Gold prices rose on Wednesday as investors awaited key US inflation data that could influence expectations for the Federal Reserve’s interest-rate policy.
Spot gold gained 0.6 per cent to $4,391.82 per ounce by 0535 GMT, while US gold futures for December delivery rose 0.2pc to $4,451.90.
Bullion reached a 10-week high on Tuesday before encountering technical resistance around its 100-day moving average at about $4,387 an ounce.
Analysts said expectations of lower US interest rates remained a key driver for gold. The metal posted its biggest weekly gain since January on Friday after weaker-than-expected US jobs data prompted traders to reduce bets on further rate increases.
According to the CME FedWatch Tool, markets are now pricing in a 50pc probability of a rate hike in September, down from 60pc before the jobs report. Lower interest rates generally support gold because the non-yielding asset becomes more attractive compared with interest-bearing investments.
Investors are now awaiting the US Consumer Price Index data, due later in the day, for further clues about the Federal Reserve’s policy outlook.
Meanwhile, other precious metals also gained. Spot silver rose 0.8pc to $65.20 an ounce, while platinum advanced 0.2pc to $1,748.03 and palladium increased 0.8pc to $1,370.75.
