Gold rises to over two-month peak as US inflation data dampens rate hike bets
GLD•Other precious metals also advance
Among other metals, spot silver XAG= rose 1.5% to $65.64 per ounce, having hit its highest level since June 22 earlier in the session.
Platinum XPT= rose 1.5% to $1,769.80, and palladium XPD= gained 1% to $1,373.58.
Eyes turn to PPI and geopolitical risks
Attention now shifts to the Producer Price Index (PPI), due on Thursday.
Meanwhile, the U.S. and Yemen's Iran-aligned Houthis reported separate attacks on shipping on Tuesday as prospects for ending the Iran war appeared to dim.
"A resumption of the hostilities can make oil move back up towards the $100 mark, in which case you could see interest rates move up and gold could struggle," Meir said.
Gold rises to a more than two-month high
Gold rose more than 1% on Wednesday to a more than two-month high, supported by a softer dollar after a U.S. inflation reading matched expectations, bolstering bets that the Federal Reserve will keep rates on hold in September.
Spot gold XAU= rose 1.1% to $4,414.32 per ounce by 11:50 a.m. EDT (1550 GMT), and climbed above the 100-day moving average, which is currently at $4,387.28. Bullion scaled to its highest level since June 5 earlier in the session.
U.S. gold futures GCcv1 rose 0.7% to $4,474.00.
Inflation data trims September rate-hike expectations
U.S. consumer inflation increased slightly in July, potentially weakening the argument for an interest rate hike from the Fed next month. It edged up 0.1% last month, on par with estimates, after dropping 0.4% in June.
