Gold Steadies Near Two-Month Highs Ahead of US PPI Data
Gold prices have steadied near two-month highs as investors await confirmation from US producer price data on whether inflation is cooling enough to keep the Federal Reserve on hold in September.
The spot gold price was little changed around $4,409 an ounce in early trade after briefly rising about 1% to its highest level since June 5. December US futures hovered near $4,467.
Gold has gained sharply since the start of August, helped by softer labour-market data, a weaker rate outlook and renewed investment demand.
The market-implied probability of a September rate increase fell to about 40% after Wednesday's consumer-price report showed US CPI rose 0.1% in July and 3.4% from a year earlier, down from 3.5% in June.
KCM Trade analyst Tim Waterer sees Thursday's pause as consolidation after the CPI-driven advance rather than a reversal in sentiment, with traders wanting confirmation from producer prices before adding aggressively to the move.