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

Business Recorder reported that gold rose more than 1% on Wednesday, moving near a two-month peak ahead of key US inflation figures. Spot bullion was quoted 1.1% higher at $4,413.69 an ounce by 1045 GMT, while December US gold futures added 0.7% to $4,473.10.

Softer expectations for a Federal Reserve rate increase next month have lent support to the metal. The CME FedWatch Tool now puts the chance of a September increase at 48%, compared with 60% before the payrolls report. UBS analyst Giovanni Staunovo said that after weaker US payroll figures, attention has moved to inflation, and a lower reading would push back expectations of further US rate cuts. Bullion pays no interest, so lower rates tend to help it.

Reuters polling of economists pointed to a 0.1% rebound in the consumer price index last month, after a 0.4% drop in June, and that data is due later on Wednesday. Silver climbed 2.5% to $66.26 an ounce, while platinum and palladium also advanced. Oil prices also firmed after two vessels were attacked, and Iran has stated the Strait of Hormuz stays shut unless Washington meets its terms.