Gold hits two-month high on inflation, Fed rate outlook

Gold prices rose to their highest level in more than two months on Wednesday as US inflation data matched analysts’ expectations, strengthening expectations that the Federal Reserve will keep interest rates unchanged in September.

Spot gold rose 0.9% to $4,406.64 an ounce at 11:30pm Bangladesh time on Wednesday, surpassing its 100-day moving average of $4,387.22.

Earlier in the day, bullion prices climbed more than 1%, reaching their highest level since June 5.

SKS