Gold Surges Amid Softer Inflation and Geopolitical Tensions

Gold prices rose to near a 10-week high on Wednesday as investors weighed US inflation data, Federal Reserve policy expectations, and developments in the Strait of Hormuz. The yellow metal surpassed $4,420 an ounce after the release of July's consumer price index (CPI) report.

The CPI numbers showed that prices rose broadly in line with forecasts, easing concerns over a potential Fed rate hike. Following last week's weak jobs report, investors reduced expectations for a September increase, supporting demand for gold.

Geopolitical uncertainty also contributed to the surge in gold prices. Pakistan's defense minister stated that the US and Iran were 'close to some sort of arrangement' to reopen the Strait of Hormuz, while President Donald Trump claimed the US had 'total control' of the waterway.