Gold Ticks Up Amid US Inflation Data and Fed Rate Hike Fears

Gold prices are experiencing a slight boost on Wednesday, reaching $4,188.17 an ounce for spot gold and $4,219.90 for US gold futures, both up by 0.2% and 1%, respectively.

This increase is attributed to market participants assessing the latest US inflation data, which will provide clues about potential Federal Reserve rate hikes.

However, despite this short-term gain, gold remains set for a monthly decline due to ongoing expectations of higher interest rates in the US.

Giovanni Staunovo, an analyst at UBS, states that 'higher oil prices and the increased probability of further US rate hikes being priced in by market participants are the main drivers behind gold's recent weakness.'