US Inflation Data Weighs on Gold Price Ahead of Fed Rate Decision

The price of Gold has stabilized above $4,400 despite some selling pressure earlier in the Asian session. Traders seem hesitant to make a move ahead of the upcoming US inflation data, with the Producer Price Index (PPI) report due on Thursday and the Consumer Price Index (CPI) on Friday.

The key data will provide more insights into the Federal Reserve's policy path, which should influence the US Dollar price dynamics and impact Gold prices. Markets are pricing in a 60% chance of a rate hike at the Fed's upcoming meeting on September 15-16, following the better-than-expected US Nonfarm Payrolls report last Friday.

The ongoing tensions between the US and Iran have kept crude oil prices high, supporting the case for a more hawkish stance from major central banks. The Reserve Bank of Australia (RBA) is also considering a rate increase later this month.