12.08.202612:50:46UTC+00Gold Rises Toward 10-Week High

Gold climbed above $4,420 an ounce on Wednesday, nearing a 10-week high as investors assessed US inflation data, Federal Reserve policy expectations, and geopolitical developments in the Strait of Hormuz. US consumer prices for July rose largely in line with forecasts, easing fears of an imminent Fed rate hike. Coming on the heels of last week’s weak jobs report, the softer inflation reading further dimmed prospects for a September increase, bolstering demand for gold. Geopolitical risk remained a significant support, with Pakistan’s defense minister stating that the US and Iran were “close to some sort of arrangement” to reopen the Strait of Hormuz, while President Donald Trump said the US had “total control” over the waterway. At the same time, sustained central-bank buying continued to underpin the gold market. China’s central bank added roughly 20 tonnes to its reserves in July, extending its buying streak to a 21st consecutive month. Globally, central banks purchased an estimated 289 tonnes of gold in the second quarter.