Gold Bounces Off Lows Ahead of Crucial US Inflation Data

Gold has regained its footing above $4,400 after an early Thursday dip to one-week lows near $4,350. The precious metal is now awaiting the US Producer Price Index (PPI) and Consumer Price Index (CPI) data due on Thursday and Friday respectively for a sustained turnaround.

The US Treasury Department's recent measure to rescue the bond market has provided continued support to gold buyers. Despite rising US Treasury bond yields, which rose by up to 5 basis points, the intervention aimed at keeping bond markets functioning was enough to revive buying interest in non-yielding bullion.

Gold also takes advantage of growing fiscal tensions in the US as longer-dated Treasury yields continue their northward trajectory. The Greenback faces headwinds from renewed expectations that the Federal Reserve (Fed) will hold key interest rates steady at its monetary policy meeting next week, with 70% of economists polled expecting this outcome.