Gold rebounds to 1-week high as traders eye Fed hikes
Gold prices bounced back to a one-week high after recently hitting a two-month low.
Spot gold climbed 1.5% to $4,194.36 per ounce, and US gold futures for December rose 1.4%.
This surge is mostly about traders reacting to possible US Federal Reserve interest rate hikes and looking for good deals.
Treasury yields fall, markets eye Fed
Gold's price is moving with shifts in the economy: US Treasury yields have dropped, so everyone's watching what the Fed does next.
St. Louis Fed President Alberto Musalem says another rate hike may be needed to get inflation down to 2%.
Right now, there's about a 19% chance of a rate hike in October and an 84% chance of at least one by December.
CPI report could sway gold prices
The upcoming Consumer Price Index (CPI) report could shake things up again.
If inflation comes in higher than expected, more rate hikes could be on the table, which usually isn't great for gold prices.
But if inflation cools off, it might actually help keep gold prices higher.