Gold Holds Near $4,050 as Softer US Inflation Tempers Fed Hike Expectations
Gold held near $4,050 an ounce after softer-than-expected US inflation reduced expectations of a near-term Fed rate hike. Fed Chair Kevin Warsh said rate hikes remain an option, while Middle East tensions and higher oil prices pose upside inflation risks.
Gold prices remained near $4,050 per ounce, supported by softer-than-expected U.S. inflation data that lowered the likelihood of an immediate Federal Reserve rate hike.
Fed Chair Kevin Warsh reiterated that rate hikes remain on the table to keep inflation close to the 2% target, but markets appear to have priced in a more dovish near-term outlook.
Adding to the complex picture, renewed Middle East tensions and rising oil prices continue to introduce upside risks to inflation, which could eventually weigh on bullion if they force the Fed's hand.
Source: First Squawk