Gold Prices Rebound on Weaker Dollar Ahead of Inflation Data
Gold prices rebounded on Wednesday as a weaker US dollar supported the precious metal ahead of key inflation data that could provide fresh clues on the Federal Reserve's next interest rate decision.
The spot gold price rose as much as 1.6% to move back above $4,400 an ounce, while gold futures in New York gained 0.7% to around $4,480 per ounce.
The move follows a near 3% decline since the end of last week, with analysts pointing to a softer US dollar and technical buying as catalysts for the recovery.
Gold's recent weakness has largely been driven by expectations of higher interest rates, reinforced by renewed tensions in the Middle East and rising oil prices. Such price hikes have raised inflation concerns and strengthened the case for the Fed to lift rates at its policy meeting next week.