Gold Retreats from Two-Month High as Investors Await US Inflation Data
Gold prices retreated from their two-month high on Wednesday as investors took profits ahead of key US inflation data that could provide more clarity on the Federal Reserve's interest rate path.
The precious metal initially climbed about 1% to $4,450 an ounce, its highest level since early June, before giving up those gains to trade around 0.4% lower.
The earlier rally was fueled by renewed hopes of a US-Iran agreement, which Pakistan has described as being 'close', despite both sides maintaining tough positions in negotiations.
However, optimism around a potential agreement has helped gold rebound, with the metal recently recording its strongest weekly performance since January. A weaker-than-expected US jobs report last week also provided support by reducing expectations of a Federal Reserve rate hike.