\n
\n<\/p>\n
Gold holds firm as softer US inflation, Middle East tensions support prices<\/p>\n<\/div>\n
Gold prices remained resilient on Wednesday, supported by softer-than-expected US inflation data and heightened geopolitical tensions in the Middle East, according to Pinky Yadav, Commodity Fundamental Analyst at Choice Broking.<\/p>\n
COMEX gold traded near $4,031 an ounce, while MCX gold edged higher to around \u20b91,41,644 per 10 grams. US inflation slowed to 3.5% year-on-year in June, while core inflation eased to 2.6%, reducing expectations of near-term interest rate hikes by the Federal Reserve.<\/p>\n
“The probability of a July rate hike has fallen to 12% from 40%, while expectations for a September hike have eased to 59% from 74%,” Yadav said.<\/p>\n
She added that Fed Chair Kevin Warsh reaffirmed the central bank’s commitment to bringing inflation back to its 2% target, while highlighting the resilience of the US economy, supported by strong business investment.<\/p>\n
Gold also continued to draw safe-haven demand following US President Donald Trump’s reinstatement of a blockade on Iranian vessels, which has escalated geopolitical tensions in the region.<\/p>\n
Investors are now awaiting key US economic releases, including the Core Producer Price Index (PPI) and Warsh’s testimony, for further clues on the Federal Reserve’s policy path.<\/p>\n<\/div>\n