Gold Rebounds to 4,351 Dollars as Inflation Data Looms

Spot gold gained 0.8% to $4,351.28 per ounce on Friday. The price rise followed a 1.8% decline on Thursday. Gold futures traded lower at $4,391.37. Investors are focused on upcoming US consumer price data. The market also awaits the Federal Reserve's next interest-rate decision.

Spot silver increased 0.8% to $64.10 per ounce. Platinum rose 1.1% to $1,801.18. The US Dollar Index remained flat at 99.04. Economists expect headline US CPI to rise 0.4% month on month. Core CPI is forecast to increase 0.2% from July.

Market Prices Reflect Fed Hike Odds

US producer prices rose 0.4% in August. This matches expectations and marks the largest monthly gain since May. Energy prices impact inflation expectations. Brent crude traded near $108 per barrel. Tensions between the United States and Iran affect oil supply.

Markets price a 70% probability of a Federal Reserve rate increase this month. This figure reflects current market expectations. It does not confirm a final decision by the Fed. Gold remains on track for a third consecutive weekly decline.

Gold ETF Holdings Hit New High

Global gold ETFs attracted $18 billion in 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 these figures.

Gold gained 13% in August. This was the third-largest monthly return in 25 years. Tony Sycamore of IG notes gold is below its 200-day moving average. That level sits near $4,537. Prices must recover above this line to end the recent decline.

Technical Levels Define Gold Direction

Analysts watch the $4,537 level for a trend reversal. If gold stays below this line, prices may fall to $4,200. The current rebound tests these technical boundaries. Market sentiment remains cautious ahead of key data releases. The source GN markets/inflation (en-US) highlights these price movements.