Gold tops $4,395 as traders weigh US CPI and Hormuz reopening
Why it matters: A softer inflation reading could reduce September rate-hike bets, while oil and Middle East risks still threaten that outlook.
Gold edged higher Wednesday, climbing as much as 0.6% to about $4,395.80 an ounce, as traders balanced two competing forces: a possible deal to reopen the Strait of Hormuz and fresh US inflation data that could reshape Federal Reserve rate expectations. Bullion had pulled back from a two-month high a day earlier, but regained ground as investors looked for clues on whether the Fed may raise rates in September. Interest-rate swaps showed the odds of a quarter-point move were roughly even. Brent crude extended its rally for a sixth day, adding to concerns that energy costs could keep inflation pressure alive even if the July consumer price index shows only a modest increase.