Gold Holds Steady Ahead of Critical US Inflation Data

Gold prices held steady near $4,400 an ounce in early Asian trading on Thursday as investors awaited crucial US inflation data. The dollar's weakness provided support for gold, but uncertainty over Federal Reserve policy kept many traders cautious.

The producer price index is due out at 12:30 GMT on Thursday, followed by consumer inflation numbers on Friday. Both reports will help markets gauge whether the Fed will hold rates steady or surprise with another hike.

Analysts noted that gold has found support from the dollar's decline, making bullion cheaper for investors using other currencies. However, a Reuters poll suggests most economists expect the Fed to leave rates unchanged this month and for the remainder of the year, while market pricing indicates a 60 percent probability of a rate increase in September.

Edward Meir, an analyst at Marex, said gold's trajectory has been influenced by the dollar's weakness. Daniel Hynes, senior commodity strategist at ANZ, pointed to mounting fiscal pressures in the US as a source of support for gold, citing the country's total debt surpassing $40 trillion.