Forex
Gold Rises Over 1% as US Inflation Data Dents Rate Hike Bets
Gold prices rose over 1% on Wednesday as a softer US dollar and inflation data supported bets that the Federal Reserve will keep interest rates steady in September.
The spot gold price climbed to $4,416.29 per ounce by 09:25 a.m. EDT (1325 GMT), its highest level since June 5. US gold futures also gained 0.8% to $4,476.10.
According to the CME FedWatch Tool, traders are now pricing in about a 38% chance of an interest rate hike at the Fed's September meeting, down from 46% before the inflation data.
Marex analyst Edward Meir attributed gold's rise to the weaker dollar and technicals. He noted that 'the CPI data has been encouraging' and said it was in line with estimates.