Gold climbs on dip-buying, Fed rate hike bets rise after US inflation data

Gold prices surged over 1 percent on Friday, rebounding from recent losses and finding a short-term floor despite strong U.S. inflation data that has bolstered expectations of an interest rate hike by the Federal Reserve next week. Spot gold rose 1.2 percent to $4,366.69 per ounce by 11:22 a.m. EDT, despite being down about 1.4 percent for the week.

Market volatility is somewhat muted, as the Fed rate hike was 70 percent priced in, according to an independent metals trader. This price action suggests that gold is finding a short-term base after the recent retreat. U.S. gold futures gained 0.1 percent to $4,409.30. Prices fell nearly 2 percent on Thursday after U.S. Producer Price Index data showed prices increased in line with expectations in August, while the Consumer Price Index increased 0.4 percent last month after edging up 0.1 percent in July. Oil prices fell on Friday but remained on course.

Brief written by urgent.news from The Korea Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.