Gold Maintains Upward Momentum as Markets Brace for U.S. Inflation Data

Gold prices continued their climb, trading above US$4,400 an ounce as investors await critical U.S. inflation figures. This uptick follows a strong performance that saw the precious metal gain 3.6% over the last two sessions. Market sentiment has been bolstered by technical support, specifically the metal’s recent move above its 100-day moving average, alongside increased demand from Chinese gold-backed ETFs. All eyes are now on Wednesday’s consumer price index report, with economists forecasting a 0.1% monthly increase for July. While a cooling inflation reading could ease pressure on the Federal Reserve following a soft jobs report, persistent energy costs remain a concern. Oil prices continue to hold gains amid escalating geopolitical tensions involving Iran, which complicates the outlook for interest rates. Cleveland Fed President Beth Hammack has signaled that further rate hikes may still be necessary to reach the 2% inflation target. Despite gold rallying past the US$4,000 support level, it currently trades roughly 17% below pre-war levels from late February. In early Singapore trading, spot gold rose 0.1% to US$4,395.64 an ounce, while silver held steady at US$65.75, and the U.S. dollar saw a marginal decline.