Gold Steadies Near Two-Month Highs as Investors Await US Producer-Price Data
Gold prices have steadied near two-month highs after a four-session rally as investors await US producer-price data to confirm whether inflation is cooling enough to keep the Federal Reserve on hold in September.
The spot price of gold was little changed around $4,409 an ounce in early trade, while December US futures hovered near $4,467. The metal has gained sharply since August, helped by softer labour-market data, a weaker rate outlook, and renewed investment demand.
US CPI rose 0.1% in July and 3.4% from a year earlier, down from 3.5% in June, while core inflation increased 0.2% on the month and eased to 2.5% annually. Shelter rose only 0.1%, and energy prices fell 1.5% during July.
KCM Trade analyst Tim Waterer sees Thursday's pause as consolidation after the CPI-driven advance rather than a reversal in sentiment, expecting confirmation from producer prices before adding aggressively to the move.