Gold Prices Hold Near Two-Month High as U.S. Inflation Report Looms

TLDR

• Gold rose 0.7% to around $4,400 an ounce on Wednesday ahead of the U.S. CPI release
• ETF inflows into gold extended to a fifth straight session, hitting a six-week high in holdings
• Uncertainty over the Strait of Hormuz closure is keeping energy markets volatile and supporting gold
• China’s central bank bought gold for a 21st consecutive month in July, adding around 640,000 troy ounces
• Gold faces key resistance near $4,460 to $4,495, with $5,000 seen as the next major target if those levels break

Gold prices pushed higher on Wednesday as traders held back from big moves ahead of the U.S. Consumer Price Index report, the key inflation reading that could shape the Federal Reserve’s next interest rate decision.

At around 07:22 GMT, spot gold rose 0.7% to $4,400.02 an ounce. Gold futures gained 0.4% to $4,459.30. Silver climbed 1.8% to $65.88 an ounce, and platinum added 0.7% to $1,755.16.

CPI Data in Focus

Markets are closely watching Wednesday’s CPI print. A softer reading could ease pressure on the Fed to keep rates high, while a hotter number could revive rate hike expectations. Swaps markets currently put the odds of a quarter-point September hike at around 50-50.

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