Gold Prices Rebound Amid Expectations for Fed Rate Hike

Gold prices rebounded on Thursday after falling by over one percent in the previous session. The precious metal rose 0.5 percent to $4,615.27 an ounce as of 0032 GMT.

The increase came despite US inflation data showing that annual inflation remained above the Fed's 2 percent target for the 65th consecutive month. This has added to the central bank's debate over whether to raise interest rates or keep them steady.

Markets are pricing in a 36.5 percent probability of a US rate hike in September and a 72.7 percent chance by December, according to the CME FedWatch Tool. Gold tends to become less attractive when interest rates are higher.

The upcoming comments from US Federal Reserve Chair Kevin Warsh at the central bank's Jackson Hole symposium on Friday may also influence gold prices.