Gold pauses after tame US inflation fuels rally to over two-month peak
Fed policymakers will likely feel little fresh urgency to raise interest rates in September after Wednesday’s data shows inflation cooled
Gold paused near a two-month high on Thursday, August 13, after inflation data showed a cooling trend. Traders paused to await the upcoming producer price index report, which could provide clues about the Federal Reserve's potential rate hikes. Spot gold hovered around US$4,408.55 per ounce, while US gold futures for December delivery remained steady at US$4,467.
Analysts suggested that gold was consolidating and waiting for confirmation before committing to further gains. The chance of a September interest rate hike dropped to 40%, down from 54% a week prior. Attention shifted to the PPI data for further confirmation of moderating price pressures.
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