Gold Surges Past $4,400 as Inflation Slows and Hike Odds Diminish

Gold prices have reached a ten-week high as investors eye a potential Fed rate hike. Spot gold traded around $4,380 per ounce on Friday, while U.S. gold futures settled above $4,430.

The rally is largely driven by softer U.S. inflation, which rose just 0.1% in July and eased to 3.4% from 3.5% in June. Core inflation increased 0.2% during the month and 2.5% year-on-year.

Market analysts believe that this trend could lead to a reduced probability of an imminent Federal Reserve interest-rate hike, currently priced in at around 31%. The Fed's benchmark rate is expected to remain unchanged at 3.50-3.75% in September, according to market expectations.