Gold Waits for US Inflation Data and the Fed
Gold prices have been steady as investors await fresh US inflation data and clues on whether the Federal Reserve will raise interest rates at its September meeting.
The Fed's decision is a crucial factor in determining gold's direction, as higher interest rates can make dollar-denominated assets more attractive, which can pressure commodities priced in dollars like gold.
Recent labor-market strength has kept a rate hike firmly in play, with the CME Group's FedWatch tool showing markets pricing a 58% chance of a September move.
The next big swing factor is the upcoming US consumer and producer inflation reports (CPI and PPI), which will give investors an idea of whether inflation is rising or falling. A hotter print can lift real yields and the dollar, while a cooler print can ease them, giving gold some breathing room.