Gold tops $4,400 as traders await US inflation report
Why it matters: A soft July CPI reading could reinforce bets the Fed holds rates steady, a backdrop that has boosted bullion.
Gold climbed above $4,400 an ounce in early Tuesday trading after a weak US jobs report fueled expectations the Federal Reserve may pause on rates. Spot bullion rose to about $4,395.64 after gaining 3.6% over the previous two sessions and touching the $4,400 level, while US gold futures had earlier traded at $4,390.60. Investors are now focused on Wednesday’s Consumer Price Index report, with economists expecting July prices to rise 0.1% after a 0.4% drop in June. Lower rate expectations tend to support gold because the metal pays no interest. Analysts also pointed to technical buying, Chinese ETF inflows and central bank demand, while elevated oil prices and tensions around the Strait of Hormuz remained a competing inflation risk.