Gold Surges to Near $4,400 as Softer U.S. Inflation Fuels Rally

Gold prices are approaching $4,400 per ounce as softer U.S. inflation and reduced expectations of an imminent Federal Reserve interest-rate hike support the rally.

The spot gold price traded around $4,380 per ounce on Friday, while U.S. gold futures settled above $4,430. This follows a series of U.S. economic releases that strengthened expectations that the Federal Reserve could leave interest rates unchanged at its September meeting.

U.S. consumer prices rose just 0.1% in July, while annual inflation eased to 3.4% from 3.5% in June. Core inflation increased 0.2% during the month and 2.5% year-on-year.

Geopolitical tensions in the Middle East have also contributed to gold's safe-haven appeal, pushing prices toward a ten-week high.