Gold steady at $4,400, ahead of PPI report

Spot gold edged up 0.77 per cent to $4,400.99 an ounce by 10:21 am PST, according to Mettis Global, staying close to a two-month high. The metal had climbed on the back of softer US inflation readings, and traders paused to weigh what comes next for interest rates. The next focus is the Producer Price Index, due later in the day, which will indicate whether price pressures are cooling.

CNBC reported that US consumer prices were 3.4 per cent higher than a year earlier in July, after a 3.5 per cent annual gain in June. The figure matched forecasts and marked a second straight month of cooling year-over-year inflation. Based on the CME FedWatch Tool, odds of a Fed rate hike at the September meeting dropped to 40 per cent from roughly 54 per cent a week earlier.

Among other metals, spot silver rose about 0.3 per cent to $65.47 an ounce, reaching a peak not seen since June 22 in the prior session. Platinum dipped 0.4 per cent to $1,749.70, while palladium fell 0.5 per cent to $1,362.10.