Gold Steadies After Tame US Inflation Data Eases Rate-Hike Bets

Gold prices steadied near a two-month high on Thursday, August 13, as traders paused following a rally driven by a cooling of US inflation. The metal's value remained unchanged at $4,408.55 per ounce by 3:36 GMT, after surging roughly 1% earlier to its highest since June 5. US gold futures for December delivery were steady at $4,467.

Analyst Tim Waterer from KCM Trade noted that gold is in a consolidation phase, as traders await confirmation from the upcoming producer price index data before committing to further price increases. Fed policymakers are expected to show little urgency in raising interest rates in September following Wednesday's data, which showed inflation declining for two consecutive months.

The Consumer Price Index (CPI) rose 3.4% over the past year, down from 3.5% in June, meeting economists' forecasts. The probability of a rate hike at the Federal Reserve's September meeting has decreased to 40%, down from about 54% a week prior. Focus has shifted to the Producer Price Index (PPI) report, due later that day, to gauge if price pressures are easing.

Geopolitical tensions between Iran and the US continue over the ongoing war in the Gulf, with no progress reported in discussions to restore the interim deal from June. Silver rose slightly by 0.3% to $65.47 per ounce, platinum fell 0.4% to $1,749.70, and palladium decreased 0.5% to $1,362.10.