Gold hit an over two-month high on Thursday, as tame U.S. consumer inflation undermined expectations of an imminent Federal Reserve rate hike, with markets awaiting producer price data for more signs of cooling price pressures.FUNDAMENTALSSpot gold climbed 0.6% to $4,433.62 per ounce by 0108 GMT, after jumping about 1% to its highest since June 5 earlier. U.S. gold futures for December delivery were also 0.6% higher at $4,493.Fed policymakers are likely to feel little fresh urgency to raise interest rates next month after data on Wednesday showed inflation cooled on a year-over-year basis for a second straight month, but they may take little comfort that monetary policy is tight enough to continue the easing trend.The Consumer Price Index rose 3.4% in the 12 months through July, down from 3.5% in June, the Bureau of Labor Statistics reported, in line with economists' expectations.Traders are now pricing in only a 40% chance of an interest rate hike at the Fed's September meeting, down from about 54% seen a week before, according to the CME FedWatch Tool.Expectations of lower rates tend to support gold by lowering the opportunity cost of holding the non-yielding asset.Attention now shifts to the Producer Price Index (PPI), due later in the day, for confirmation that price pressures are moderating.The CPI print for July did not capture the most recent rise in oil prices as attacks on ships in the Middle East continued and talks to end the Iran war hit an impasse.In other metals, spot silver gained about 1% to $65.91 per ounce, having climbed to its highest since June 22 in the previous session.Platinum added 0.3% at $1,762.70, while palladium was up 0.1% at $1,371.20.DATA/EVENTS (GMT)0600 UK GDP Est 3M/3M Jun0600 UK GDP Estimate MM, YY Jun0600 UK Services MM, YY Jun0600 UK Manufacturing Output MM Jun0600 UK GDP Prelim QQ, YY Q21230 US Initial Jobless Clm 8 Aug, w/e1230 US PPI Machine Manuf'ing Jul
Gold advances as mild US inflation data puts Fed rate hike in doubt
Gold prices have soared to a two-month peak as consumer inflation in the U.S. showed signs of cooling. This easing in inflation has reduced the likelihood of an immediate interest rate hike by the Federal Reserve. Financial markets are now looking forward to the upcoming producer price data to validate this trend.











