Gold Near Two-Month High Ahead of US Inflation Data

Gold prices rose more than 1% on Friday, supported by reduced bets on a US interest rate hike, as investors awaited key inflation data. Spot gold gained 1.1% to $4,413.69 per ounce, and futures rose 0.7% to $4,473.10. Traders are watching the consumer price index, with a 48% probability of a rate hike in September.

Gold prices rose more than one percent on Friday, supported by reduced bets on the Federal Reserve raising interest rates next month, as investors awaited key US inflation data that could reshape monetary policy expectations. Spot gold gained 1.1% to $4,413.69 per ounce by 1045 GMT. US gold futures for December delivery rose 0.7% to $4,473.10. Gold climbed to its highest since June 5 on Tuesday before facing technical resistance at the 100-day moving average around $4,387, then fell at settlement for the second time this month. Giovanni Staunovo, an analyst at UBS, said: "Following weak US jobs data, focus is turning to inflation in the United States." A Reuters poll of economists predicted the consumer price index rose 0.1% last month, after falling 0.4% in June. According to the CME Group's FedWatch tool, traders now see a 48% probability of a rate hike in September, down from 60% before the jobs report.

Gold Near Two-Month High Ahead of US Inflation Data