Gold Waits On US CPI As Oil Adds Inflation Pressure

Gold prices hovered near a new high on Wednesday as investors awaited the US inflation report. Spot gold reached $4,377.79 an ounce and approached its 100-day moving average of $4,387.

The market is split on whether the Federal Reserve will raise interest rates in September, with traders currently assigning about a 48% probability to this outcome.

Oil prices are also contributing to inflation pressure, with crude rising due to Middle East tensions. If oil continues to climb, investors may worry that inflation could accelerate even if the near-term CPI reading cools.