Gold Holds Firm Despite Muted US Inflation Data

The gold market has shown resilience in the face of muted US Consumer Price Index (CPI) data, but analysts warn that continued headwinds may lie ahead.

The August CPI rose 0.4% following a 0.1% increase in July, meeting economists' expectations. Over the past 12 months, headline inflation stood at 3.4%, also in line with forecasts.

Core CPI, which excludes volatile food and energy prices, increased by 0.3% last month, slightly higher than expected. The annual core inflation rate remained steady at 2.4%.