Gold Bounces Back Amid Inflation Data and Rate Hike Uncertainty

The gold price recovered from an early dip to trade higher in New York on Friday, despite some profit-taking after reaching a 10-week high. The market is now focused on the implications of July's soft inflation data for the Federal Reserve's interest rate hike plans.

Gold for December delivery rose 0.3% to $4,435.00 an ounce, while spot gold was up 0.1% at $4,353.27. Silver prices also increased, with September silver adding 0.2% to $65.13 an ounce and spot silver rising 0.4% to $64.75.

Analysts believe that the Fed's decision to hold off on a rate hike has weakened its case for a September increase. However, some experts still see potential for a hike in the coming months.