Gold nears $4,400 as oil rises before US inflation report
Why it matters: A hotter CPI could strengthen bets on a September Fed rate hike, a risk for bullion as Brent extends a six-day climb.
Gold edged higher Wednesday, briefly nearing $4,400 an ounce, as traders weighed rising oil prices, uncertainty over the Strait of Hormuz and looming US inflation data that could shift Federal Reserve rate expectations. Spot gold rose as much as 0.6% and traded at $4,395.80 an ounce in Singapore. Brent crude extended gains for a sixth day as hopes for a deal to reopen Hormuz faded, even after Pakistan's defense minister said the United States and Iran were close to an arrangement. Markets are focused on July US consumer prices, with economists expecting a 0.1% monthly increase after a 0.4% drop in June. Interest-rate swaps imply roughly even odds of a quarter-point Fed increase in September.