Gold Soars as Lower-Inflation Data Boosts Fed Rate Hike Doubts

Gold prices surged to $4,187.43 per ounce on Thursday, following US inflation data that showed lower-than-expected growth in August.

The market reacted to the statistics by lowering its estimate of the probability that the U.S. Federal Reserve would raise interest rates in October from 45% to 36%. However, traders still put the probability of a rate hike in December at 89%, which could negatively impact gold prices since higher interest rates reduce the appeal of gold.

According to Ilya Spivak, head of global macro strategy at Tastylive, further macroeconomic data will be crucial in shaping expectations regarding the Fed's decisions.