Gold Soars Toward 10-Week High on Soft Inflation Data and Hormuz Tensions
Gold prices rose to a near-10-week high on Wednesday as investors weighed US inflation data and Federal Reserve policy expectations.
US consumer prices rose in line with forecasts in July, easing concerns over an imminent Fed rate hike. The softer inflation picture encouraged investors to reduce their expectations for a September increase, supporting demand for gold.
Geopolitical uncertainty also played a role, with the Strait of Hormuz remaining a key concern. Pakistan's defense minister said the US and Iran were 'close to some sort of arrangement' to reopen the waterway, while President Donald Trump claimed the US had 'total control' of it.
Central-bank buying continued to underpin gold demand, with China's central bank adding around 20 tonnes to its reserves in July. Global central banks bought an estimated 289 tonnes in the second quarter.