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Reuters reported that gold rose to a more than two-month high on Wednesday after a US inflation reading matched expectations, bolstering bets that the Federal Reserve would keep rates on hold in September. Spot gold rose 0.9 percent to $4,406.64 per ounce by 1:30 p.m. EDT and climbed above the 100-day moving average, which stood at $4,387.22. Bullion had scaled to its highest level since June 5 earlier in the session when it gained more than 1 percent. US gold futures rose 0.6 percent to $4,466.80 an ounce during the trading period.
The inflation data contributed to a softer dollar that typically supports the precious metal priced in the US currency, CNBC data showed. Investors now await the producer price index release due on Thursday for additional signals on the inflation path and potential monetary policy moves. The Federal Reserve is widely anticipated to maintain rates at its September meeting based on current market pricing referenced across reports.
Deutsche Bank analysts noted that gold had recently experienced its worst two-month decline on record after reaching a peak above $5,000 an ounce earlier in the year. The bank projected that the metal could still rise to $8,000 an ounce within five years, citing its value as a hedge against economic uncertainty and inflation. Central bank purchases have provided consistent underlying demand for gold throughout recent periods, according to multiple market assessments.
WAM had reported one day earlier that gold rose for a third consecutive session to its highest in more than two months as traders eyed upcoming US inflation figures for clues on interest rates. Spot gold reached $4,432.74 per ounce in that prior session, building on momentum from previous days. The pattern reflects sustained investor interest in the metal amid shifting rate expectations.
Geopolitical factors including developments around Iran talks have also influenced gold’s safe-haven demand at times this week, Yahoo Finance coverage indicated. Silver and palladium displayed varied weekly performances with some gains noted in trading reports. The combination of policy signals and external risks continues to shape movements in precious metals markets.
