(RTTNews) – Gold prices were up more than 1 percent on Wednesday amid rising bets that the U.S. Federal Reserve will not hike interest rates anytime soon.
Spot gold traded up over 1 percent at 4,413 an ounce, rising towards a 10-week high, primarily due to a reduction in expectations of Fed rate hikes after recent data showed a surprise contraction in the U.S. jobs market. U.S. gold futures were up 0.8 percent at $4,477.30.
Traders await a closely watched report on U.S. consumer price inflation later in the day for fresh insights into the Federal Reserve’s next move.
The report is expected to show consumer prices inched up by 0.1 percent in July after falling by 0.4 percent in June.
Core consumer prices, which exclude food and energy prices, are expected to rise by 0.2 percent in July after coming in unchanged in June.
Producer price inflation data is due on Thursday, followed by retail sales and consumer sentiment readings on Friday.
On the geopolitical front, Brent crude futures held above $89 a barrel, rising for the sixth consecutive session following mixed signals surrounding a potential deal between the U.S. and Iran.
Pakistan’s defense minister Khawaja Asif said the U.S. and Iran are close to “some sort of an arrangement” and that “things are shaping up again in favor of a peace arrangement or a deal.”
On the contrary, fresh attacks on ships in the Strait of Hormuz and Bab el-Mandeb raised worries that disruptions to global crude supplies could persist.
Shipping data showed traffic through the strait fell to just six vessels on Monday compared with a 10-day average of about 11 and roughly 125 to 140 vessels before the war.
Iranian officials have reiterated that the Strait of Hormuz would remain closed and negotiations could not resume unless the U.S. complied with a June framework agreement and compensated Iran for alleged violations.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
www.nasdaq.com