Gold prices hold firm ahead of US inflation data

Business Recorder reported that bullion barely moved on Wednesday, as traders awaited the latest American inflation readings due later in the day. Spot gold stood at $4,159.45 an ounce at 0251 GMT, while US gold futures for December edged up 0.1 per cent to $4,182.60.

Ilya Spivak of Tastylive described the move as one within a range, saying gold's ability to hold steady while oil rallies suggests it is looking for a catalyst. Separately, an administrative building of Saudi Aramco in Dhahran was reportedly attacked as fighting between Yemen's Houthis and the kingdom intensified, and oil prices rose on the news.

New York Fed President John Williams said the central bank may need to lift rates again this year to reduce inflation, while Governor Christopher Waller argued that higher bond yields reflect stronger growth rather than inflation expectations. CME FedWatch data showed markets pricing roughly a 23 per cent chance of a hike this month and an 88 per cent probability of one in December. Because gold pays no yield, higher interest rates typically reduce its appeal, even though the metal is often seen as an inflation hedge.