Gold Surges Above $4,400 Ahead of Key US Inflation Report

Gold prices rose above $4,400 an ounce on August 11th for the first time in two months. The increase comes ahead of a key US inflation report that could provide clues to the Federal Reserve's interest-rate hike plans.

Bullion has rallied by as much as 1% today and 3.6% over the past two sessions, with technical buying driven by its ascent through the 100-day moving average on Monday. Analyst Hebe Chen at Vantage Markets in Melbourne said gold is starting to break away from a downside spiral that began in March.

According to Bloomberg's survey of economists, US consumer price index is expected to rise 0.1% in July, following a 0.4% decline in the previous month. However, a rate hike by the US central bank would be negative for gold, which does not pay interest.