Gold Tops $4,400 an Ounce for First Time in Two Months Ahead of US CPI

International gold prices climbed above $4,400 an ounce for the first time in two months ahead of the release of U.S. consumer price index data.

According to Bloomberg, spot gold rose as much as 0.7% on Aug. 10, touching $4,412.80 an ounce intraday, the highest level in two months. The metal has gained 3.6% over the past two trading sessions.

The advance followed a break above the 100-day moving average in the previous session, drawing technical buying. Inflows into Chinese gold exchange-traded funds and increased purchases by central banks also supported the rally.

Hebe Chen, an analyst at Vantage Markets, said there are early signs that gold's recent decline is shifting into a new upswing. The fact that bullion is rising even as oil prices and the dollar strengthen suggests investors are reassessing how they value the metal, she added.

Market attention is now on the U.S. July CPI report due on Aug. 13. Economists surveyed by Bloomberg expect the index to rise 0.1% from the previous month, after a 0.4% decline in June.

Still, rising energy prices could intensify inflation pressures and increase the chances of an additional interest-rate hike by the Federal Reserve. Concerns have also grown that higher global oil prices could fuel inflation after U.S. President Donald Trump presented new demands to Iran, adding uncertainty to negotiations over reopening the Strait of Hormuz.

Cleveland Fed President Beth Hammack also said more than one additional rate increase may be needed to bring inflation back to the central bank's 2% target, keeping markets on alert.