Gold Market
Gold prices surpassed $4,400 per ounce after US consumer inflation softened in July, encouraging expectations that the Federal Reserve will leave interest rates unchanged at its upcoming policy meeting.
Gold stabilised below $4,400 during Asian trading on Wednesday as rising energy prices and renewed US rate hike expectations offset recent safe-haven gains ahead of key inflation data.
Gold dipped slightly to $4,381 per ounce on Tuesday as investors paused ahead of key US consumer price index figures and monitored Middle East risks.
Gold hit a two-month high of $4,435 per ounce before pulling back as surging crude oil prices renewed inflation fears and pushed market expectations toward a potential Federal Reserve interest rate hike.
Gold climbed beyond $4,400 per troy ounce on Tuesday to hit a two-month high, driven by soft US employment figures and rising Middle East geopolitical risks.
Gold took a breath on Monday, trading near $4,345 per ounce after last week's 7% surge. Markets are weighing Federal Reserve rate expectations ahead of crucial US inflation figures.
Gold slipped from its highest point since mid-June as a stronger US dollar and Middle East geopolitical tensions countered the impact of weak US employment figures.
The US dollar fell following a weaker-than-expected July payrolls report, leading investors to reduce expectations for Federal Reserve interest rate increases ahead of key inflation figures.
American households lowered their one-year inflation expectations to 3.6% in July, while medium- and longer-term forecasts remained unchanged, according to the Federal Reserve Bank of New York.