Gold Soars Above $4,400 as Traders Eye US Inflation Data

Gold prices have surged above $4,400 an ounce as investors await key US inflation data. The precious metal has been on a tear in recent weeks, driven by increased central bank purchases and technical buying.

The metal's rally comes ahead of Wednesday's release of the US consumer price index, which is expected to show a 0.1% rise in July. A moderation in price growth could alleviate some of the inflation anxiety at the Federal Reserve.

However, if higher energy prices continue to exert more inflationary pressure, the likelihood of a rate hike by the Fed will increase, which would be negative for gold.

Gold has been gaining traction despite remaining 17% below its pre-war levels. Analyst Hebe Chen at Vantage Markets notes that gold is starting to break away from its recent downside spiral and rising alongside higher oil prices indicates traders are pricing it through a different lens.