Gold climbs 1%, near 2-month peak in run-up to US CPI report

Gold prices rose more than 1% on Wednesday, supported by easing expectations for a Federal Reserve rate hike next month as market participants awaited pivotal U.S. inflation data that is likely to shed light on the central bank's future policy path.

Spot gold XAU= rose 1.1% to $4,413.69 per ounce by 1045 GMT. U.S. gold futures GCcv1 for December delivery rose 0.7% to $4,473.10 per ounce.

Bullion climbed to its highest since June 5 on Tuesday, but retreated after facing resistance at its 100-day moving average near $4,387 an ounce, ending lower for only the second time this month.

"Following weaker U.S. payrolls, the focus is on U.S. inflation," said UBS analyst Giovanni Staunovo.

"A lower print would see the market pricing out further U.S. rate cuts and further support the gold price, but with still-high U.S. gasoline prices, that should cap the upside in the near term, with Fed official eventually retaining a hawkish message."

The CPI likely rebounded 0.1% last month, a Reuters survey of economists predicted, after falling 0.4% in June.