Gold Rebounds Above $4,400 as US Inflation Data Looms
Gold prices rebounded to above $4,400 on Thursday after dipping below that level earlier in the day. The move away from a one-week low came as markets awaited US inflation data, specifically the US Producer Price Index and Consumer Price Index releases due later this week.
The readings are expected to influence expectations for the Federal Reserve's 16 September rate decision and, in turn, the value of the US Dollar (USD). Currently, there is a 60% chance of a rate hike at the upcoming meeting, with that view reinforced by last Friday's Nonfarm Payrolls report.
Meanwhile, oil prices hit a three-month high due to tensions involving the US and Iran. The Strait of Hormuz shipping disruptions have artificially inflated energy costs, which could feed into core CPI metrics. As such, futures traders are advised to hedge their bullion positions with long crude oil calls.