Traders await US CPI data to gauge Fed policy direction, capping gold’s rally despite recent dip-buying interest.
Gold prices edged higher in Asian trading on Wednesday, recovering from a pullback but remaining below the $4,400 mark. The move follows a retreat from $4,435, the highest level since June 5, as investors await US inflation data for clues on the Federal Reserve’s next steps.
Weaker-than-expected US jobs data last Friday eased pressure for further Fed rate hikes, but persistent inflation risks from rising oil prices keep hawkish expectations alive. Elevated US Treasury yields and a stronger USD continue to limit gold’s upside.
Crude oil prices climbed to a 10-day high amid geopolitical tensions, including Iran-backed attacks on Red Sea vessels, adding to inflation concerns. The safe-haven dollar also benefited, further restraining gold’s advance.