Gold Stalls Ahead of US Inflation Data as Rate Hike Odds Rise

Gold prices have held steady above $4,400 despite some hesitation from traders ahead of US inflation data releases. The US Producer Price Index (PPI) report is scheduled for Thursday and the Consumer Price Index (CPI) will follow on Friday.

The release of these key economic indicators could provide more insight into the Federal Reserve's policy path, influencing USD price dynamics and potentially impacting gold prices. Currently, markets are pricing in a 60% chance of a rate hike at the upcoming September 15-16 policy meeting.

Inflation risks remain elevated due to higher energy prices, underpinning prospects for immediate Fed tightening. Crude oil prices have reached a fresh three-month high amid ongoing tensions between the US and Iran.