Gold Steadies as Hotter PPI and Oil Prices Fuel Fed Hike Bets

Gold prices remained relatively steady on Friday after falling nearly 2% overnight due to a hotter U.S. producer price report and surging oil prices.

The data showed the PPI rose 0.4% in August, its strongest increase since May, which reinforced concerns that rising energy costs are fueling inflation just days before the Federal Reserve's policy decision.

Oil prices have become a significant part of this inflation story, with Brent crude climbing close to $108 a barrel due to ongoing tensions between the United States and Iran.

Despite near-term pressure, gold continues to attract substantial investment demand, with global physically backed gold ETFs attracting $18 billion in August, their second-largest monthly inflow on record.