Gold holds near $4,360 as traders weigh Fed path, Hormuz deal
Why it matters: Softer US inflation eased pressure for a September rate hike, but Middle East risks still threaten fresh energy shocks.
Gold was little changed at about $4,359 an ounce after slipping back below $4,400, as investors balanced the Federal Reserve's rate outlook against hopes for a deal to reopen the Strait of Hormuz. Bullion is still headed for a second straight weekly gain after reaching a 10-week high earlier this week. A softer US inflation reading suggested the July impact from energy-price shocks tied to the Iran war had faded, reducing pressure on the Fed to tighten again. Money markets now see about a one-in-three chance of a September rate increase. Traders are also watching upcoming US jobs data and Federal Reserve Chair Kevin Warsh's remarks at Jackson Hole later in August.