Gold Rebounds Towards 10-Week High Ahead of US Inflation Data
Gold prices rebounded on Wednesday, reaching towards a 10-week high as markets awaited key US inflation data that could reshape policy expectations. The metal gained 0.6% to $4,391.82 per ounce by 0535 GMT, while US gold futures for December delivery rose 0.2% to $4,451.90.
The increase in gold prices is largely attributed to reduced bets on Federal Reserve tightening next month, said Kelvin Wong, a senior market analyst at Oanda. Traders are now pricing in a 50% chance of a hike in September, down from 60% before the jobs report, according to the CME FedWatch Tool.
The US Consumer Price Index data due later in the day could further impact interest rate expectations, with Fed Bank of Chicago President Austan Goolsbee expressing concerns about too-high inflation. Meanwhile, oil extended gains as the US and Houthis reported separate attacks on shipping on Tuesday.