Gold climbs on subdued U.S. dollar as inflation data awaited amid oil rally - CNBC

AI desk brief

Gold rose 1.5% to $4,418.71/oz as the dollar stayed near a two-week low, with December gold futures up 0.6% to $4,464.30. The move came ahead of Thursday’s U.S. PPI and Friday’s CPI releases, which traders will use to gauge whether the Fed stays on hold or leans toward another hike; CME FedWatch is pricing about a 60% chance of an increase next week.

The backdrop is supportive for bullion despite firmer rates: oil has broken above $100/bbl amid Middle East war-related supply and freight disruption risks, reinforcing inflation concerns while real policy uncertainty keeps demand for gold intact. U.S. 10-year Treasury yields briefly hit their highest since November 2023 before easing, leaving the market caught between weaker USD support and higher-yield headwinds.