Gold Holds Near Two-Month High as Markets Await US Inflation Data

Gold prices steadied on Tuesday after briefly climbing to their highest level in more than two months, as investors awaited key U.S. inflation data that could influence the Federal Reserve’s interest-rate decisions. Spot gold was little changed at $4,386.13 an ounce after reaching $4,434.84, its highest level since June 5. U.S. gold futures gained 0.6% to $4,444.70.

Investors are closely watching U.S. consumer price data due on Wednesday and producer price figures expected on Thursday for clues about the Fed’s policy path. Rising 10-year Treasury yields, which reached their highest level in more than a week, have increased the opportunity cost of holding non-yielding gold. Markets are currently pricing a 48% chance of a September rate hike, up from 44% a day earlier.

Gold’s outlook is also being influenced by geopolitical uncertainty, including tensions surrounding Iran and the reopening of the Strait of Hormuz. Analysts said ongoing structural demand and signs of renewed interest from Western investors are providing support for precious metals, although stronger-than-expected inflation could put pressure on gold by strengthening expectations for higher interest rates.

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