Gold stays near 10-week high amid softer US inflation
Gold holds close to a 10-week high around $4,400/oz as softer US inflation data supports expectations the Fed keeps rates unchanged next month.
Gold fluctuated around $4,400 an ounce, remaining close to a 10-week high as softer US inflation data reinforced expectations that the Federal Reserve will leave interest rates unchanged next month.
US producer-price inflation eased more than expected in July, helped by lower energy and food costs, providing further evidence that price pressures are not broadly accelerating.
However, renewed tensions in the Middle East remain a risk, as any disruption could push energy prices higher and revive inflationary pressures.
Oil is heading for a weekly gain as traders continue to monitor efforts by the US and Iran to end the conflict and reopen the Strait of Hormuz.
Gold has also benefited from stronger investor demand and continued central-bank purchases, with China adding around 20 tonnes to its reserves in July, marking the 21st consecutive month of accumulation.
Globally, central banks purchased an estimated 289 tonnes of gold in the second quarter.