Gold Nears 10-Week High Amid Anticipation of U.S. Inflation Data

Gold climbed nearly 1% on Wednesday, buoyed by declining market bets that the U.S. Federal Reserve will raise interest rates next month. Investors are awaiting pivotal U.S. inflation data expected later today, which could recalibrate monetary policy forecasts.

Price Movement and Technical Levels

In spot trading, gold advanced 0.9% to $4,406.34 per troy ounce as of 0330 GMT. U.S. December gold futures rose 0.6% to $4,466.70.

The metal reached its highest level in 10 weeks on Tuesday before encountering technical resistance near its 100-day moving average at approximately $4,387 — a level at which it settled lower for the second time this month.

Market Drivers and Rate Expectations

Kelvin Wong, Senior Market Analyst at OANDA, stated: “The primary driver for gold is the decline in expectations for a Federal Reserve interest rate hike.”

Gold posted its largest weekly gain since January on Friday, following weaker-than-expected U.S. jobs data that prompted traders to scale back their bets on higher U.S. interest rates.

According to the CME Group’s FedWatch Tool, traders now assign a 50% probability to a rate increase in September — down from 60% prior to the release of the jobs report.

Lower interest rates typically support gold, a non-yielding asset.

Upcoming U.S. CPI Report

Today’s scheduled release of the U.S. Consumer Price Index (CPI) could reshape interest rate expectations.

Broader Commodity Context

Oil extended its gains after the United States and Iran-aligned Houthi forces in Yemen separately attacked two vessels on Tuesday. Prospects for ending the conflict remain dim, with Tehran declaring the Strait of Hormuz will remain closed unless Washington accepts its conditions.

Other Precious Metals

Spot silver rose 1.2% to $65.46 per ounce, trading below Tuesday’s peak — its highest level since June 22.

Platinum gained 0.6% to $1,754.10, while palladium increased 0.8% to $1,370.86.