LONDON: Gold prices rose more than 1 percent on Wednesday, supported by easing expectations for a Federal Reserve rate hike next month as market participants awaited pivotal US inflation data that is likely to shed light on the central bank’s future policy path.
Spot gold rose 1.1 percent to $4,413.69 per ounce by 1045 GMT. US gold futures for December delivery rose 0.7 percent to $4,473.10 per ounce.
Bullion climbed to its highest since June 5 on Tuesday, but retreated after facing resistance at its 100-day moving average near $4,387 an ounce, ending lower for only the second time this month.
“Following weaker US payrolls, the focus is on US inflation,” said UBS analyst Giovanni Staunovo.
“A lower print would see the market pricing out further US rate cuts and further support the gold price, but with still-high US gasoline prices, that should cap the upside in the near term, with Fed official eventually retaining a hawkish message.”
