Gold Prices Steady Near Two-Month High Amid Weaker Inflation Data

Gold prices steadied near a two-month high on Thursday as traders reassessed their expectations of a Federal Reserve rate hike following mild US inflation data.

The Consumer Price Index rose 3.4 per cent in the 12 months through July, down from 3.5 per cent in June, which aligns with economists' forecasts.

Fed policymakers are likely to feel less urgency to raise interest rates next month after this data, and as a result, traders are pricing in only a 40 per cent chance of an interest rate hike at the Fed's September meeting.

The upcoming Producer Price Index (PPI) will provide further clues on prospects for near-term Federal Reserve rate hikes. The PPI is due later today.