Spot gold rises 0.7% to $4,209.71 after softer US inflation
Gold prices got a boost on Wednesday after US inflation numbers came in lower than expected.
With the dollar losing some strength and talk of the Federal Reserve possibly holding off on interest rate hikes, spot gold rose 0.7% to $4,209.71 an ounce, and US gold futures climbed 1.5%.
Still, even with this bump, gold is down 5.4% so far in September.
Annual PCE inflation drops to 2.6%
The key reason: the latest Personal Consumption Expenditures (PCE) Price Index, a major inflation measure, showed just a small 0.3% rise for August (after only 0.1% in July).
Annual PCE inflation dropped to 2.6% from July's 3.4%.
This softer data made markets less sure about an October Fed rate hike (probability fell from 45% to 37%), making gold more attractive, especially since a weaker dollar means better deals for buyers using other currencies.