Gold rebounds towards 10-week high as markets brace for US CPI data

Business Recorder reported that spot gold climbed 0.9% to $4,406.34 an ounce by 0330 GMT on Wednesday, while US December futures added 0.6% to $4,466.70. The rise was supported by reduced expectations of another Federal Reserve rate increase next month, as investors waited for US inflation figures that could shift policy outlook.

Bullion had reached a 10-week high on Tuesday but met resistance at its 100-day moving average, near $4,387, and settled lower, the second such close this month. The metal's biggest weekly advance since January came on Friday, after softer-than-expected employment figures prompted traders to pare bets on US rate increases. Markets now put the chance of a September hike at 50%, versus 60% before the jobs data, based on CME FedWatch Tool data.

Ahead of the US Consumer Price Index release later on Wednesday, Fed Bank of Chicago President Austan Goolsbee said inflation worries outweigh concerns about labour market weakness. Oil extended its gains after the US and Yemen's Houthis separately reported attacks on shipping, while Tehran indicated the Strait of Hormuz will stay shut unless the US meets its demands. Platinum traded at $1,754.10 after a 0.6% increase, silver rose 1.2% to $65.46, and palladium reached $1,370.86 following a 0.8% gain.