Gold rises to $4,399 as markets await key US CPI report

Spot gold moved higher on Wednesday, rising 0.25 per cent to $4,399.46 an ounce by 12:22 pm PST, Mettis Global reported. The advance came as investors saw a lower chance of a Federal Reserve rate increase, with the outlook for borrowing costs shifting ahead of a closely watched inflation release.

Earlier in the week, the metal reached a 10-week high on Tuesday before stalling at technical resistance close to $4,387, which is its 100-day average, according to CNBC. It finished that session in negative territory for the second time during August. The pullback followed gold's strongest week since January, which ended Friday after a weaker-than-expected US jobs report led traders to scale back bets on Fed tightening. CME FedWatch data showed a 50 per cent chance of a September hike, down from 60 per cent before the employment figures.

Silver climbed 1.2 per cent to $65.46 an ounce, easing slightly from the June 22 peak it touched a day earlier, while platinum added 0.6 per cent to $1,754.10 and palladium rose 0.8 per cent to $1,370.86. Attention now moves to the US Consumer Price Index release scheduled later in the day, which traders think could change the path of interest rates.