Gold Prices Retreat Amid Middle East Tensions

Gold prices have retreated to the $4,400 level in Asia on Thursday after facing rejection at $4,450 or fresh ten-week highs earlier in the session.

Attention now turns to the US Producer Price Index (PPI) data for more signs of cooling inflation, particularly after a mild US Consumer Price Index (CPI) report.

The benign inflation readings further reduced bets for a US Federal Reserve (Fed) interest rate hike in September, triggering a big sell-off in the US Dollar (USD) alongside US Treasury bond yields, bolstering the ongoing Gold price uptrend toward $4,450.

TD Securities points out that the latest inflation data should 'continue to bring relief to the Fed regarding the need for tighter policy, at least in the near horizon.'