Gold Rebounds to $4,351 as US CPI Data Looms
Spot gold climbed 0.8% to $4,351.28 on Friday, reversing a two-day slide. Markets await August inflation data that will shape Federal Reserve policy expectations.
Spot gold rose 0.8% to $4,351.28 per ounce on Friday. This gain follows a 1.8% drop in the previous session. Investors are positioning ahead of the release of US consumer price index data. Gold futures traded lower at $4,391.37. Spot silver increased 0.8% to $64.10. Platinum gained 1.1% to $1,801.18. The US Dollar Index held steady at 99.04.
The metal remains on track for a third consecutive weekly decline. August producer price data showed a 0.4% monthly increase. This marks the largest rise since May. Brent crude oil trades near $108 per barrel. Energy costs are rising due to geopolitical tensions between the United States and Iran. Money markets price a 70% probability of a Federal Reserve rate hike this month.
Inflation Expectations Drive Rate Hike Bets
Economists forecast US headline CPI to rise 0.4% month on month in August. Year on year growth is expected at 3.4%. Core CPI is projected to increase 0.2% from July. These figures will inform the Federal Reserve's next policy decision. Higher energy prices add pressure to the inflation outlook. The conflict involves US strikes on Iranian oil tankers. Iranian missile attacks on a Jordanian airbase also contributed to market volatility. Houthi forces targeted Saudi infrastructure in Yemen.
Record ETF Inflows Support Demand
Global gold ETFs recorded $18 billion in inflows during August. This is the second-largest monthly inflow on record. Holdings increased by 121 tonnes to a record 4,189 tonnes. Assets under management rose 16% to $615 billion. The World Gold Council reported a 13% gain for gold in August. This marks the third-largest monthly return in 25 years. Investment demand remains a key support factor for the metal.
Technical Levels Define Near-Term Path
Gold trades below its 200-day moving average of $4,537. Tony Sycamore, a senior market analyst at IG, identifies this level as critical. Prices must reclaim this average to signal an end to the decline from the $4,697 high. If the metal fails to break above this threshold, prices may test $4,200. The source GN auto markets/commodities: gold prices notes that technical structure currently favors caution. Traders watch these boundaries for directional cues.
