Gold Stagnant Near $4,400 as Market Awaits Inflation Data and Rate Hints

Gold prices hovered around $4,400 an ounce on Thursday as investors awaited key inflation data that could influence US interest rates. Market participants were reluctant to take on fresh positions ahead of the releases, which are set for later in the day. The US producer price index is due at 1230 GMT (8:30am US Eastern time), followed by consumer inflation figures on Friday.

The outlook for Federal Reserve action remains uncertain, with a Reuters poll of economists pointing to a majority expecting rates to remain steady through year's end. This diverges from the CME FedWatch Tool, which assigns a 60% probability to a rate hike this month.

Higher interest rates typically reduce the appeal of non-yielding assets like gold, making it less attractive for investors to hold. The European Central Bank is set to raise rates on Thursday for the second time this year, aiming to curb inflation tied to the US-Iran conflict.