Forex
Gold Prices Steady as US Inflation Eases, PPI Report Looms
Gold prices steadied on Thursday near their highest level in over two months after a strong rally, fueled by easing US inflation. The Consumer Price Index (CPI) rose 3.4% year-over-year in July, down from 3.5% in June.
Traders are now pricing in only a 40% chance of an interest rate hike at the Federal Reserve's September meeting, down from about 54% seen a week before, according to the CME FedWatch Tool.
Gold is seen as a safe-haven asset that benefits when interest rates are lower. The upcoming Producer Price Index (PPI) report will provide further clues on the prospects of near-term Federal Reserve rate hikes.