Gold Holds Near $4,400 as Traders Eye U.S. Inflation Data for Possible Fed Rate Hike

Gold traded near unchanged around $4,400 an ounce as investors looked ahead to U.S. inflation data due this week for clues on whether the Federal Reserve will raise interest rates.

Bloomberg reported on Sept. 9 that spot gold was little changed at $4,400.32 an ounce as of 7:22 a.m. Singapore time. The metal rose 1% a day earlier, snapping a three-session slide.

Gold has moved in a narrow range around $4,400 in recent weeks after rebounding from near $4,000 an ounce in July. Some investors are again turning to the metal as a long-term portfolio hedge. At the same time, higher Treasury yields and inflation concerns tied to tensions in the Middle East are weighing on prices in the short term.

The yield on the U.S. 10-year Treasury rose again. Yields advanced after the Treasury Department expanded long-term bond buybacks to as much as $6 billion, a move that fell short of market expectations. Rising Treasury yields are typically a headwind for gold because the metal does not pay interest.

Oil prices are another variable. Brent crude rose above $100 a barrel for the first time since July, while Iran warned it would intensify the war if the U.S. continues attacks on its territory and infrastructure. Continued disruption to Middle East energy supplies could add to inflation pressure.

Markets are focused on the U.S. producer price index and consumer price index due this week, key readings for judging the path of interest rates ahead of the Fed's Sept. 14-15 policy meeting. The swaps market is currently pricing in about a 65% chance of a Fed rate increase.

At the same time, silver was little changed at $67.29 an ounce after rising 2.4% a day earlier. Platinum and palladium edged higher, while the Bloomberg Dollar Spot Index fell 0.1%.