Soft Inflation Boosts Gold Demand

"the broader backdrop remained constructive for bullion, supported by softer Fed rate expectations, sustained central bank buying led by China and steady investment demand."

"The broader backdrop remained constructive for bullion, supported by softer Fed rate expectations, sustained central bank buying led by China and steady investment demand."

"Gold ended the 10–17 August period on a firm note, with prices holding above the $4,300/oz level after briefly climbing toward $4,400 as softer US inflation and labour-market data reduced expectations of an immediate Federal Reserve rate hike."

"Softer U.S. inflation and PPI data have strengthened expectations that the Federal Reserve could hold rates steady in September, with markets now pricing roughly a one-in-three chance of a hike. This remains supportive for non-yielding bullion"

"The US Consumer Price Index increased 0.1% in July after declining 0.4% in June. The reading matched market expectations and reduced expectations of a near-term shift towards tighter monetary policy."

"bullion prices remain supported as investors track US inflation data for clues on the future direction of monetary policy. He noted that a softer inflation reading could strengthen expectations of a more accommodative rate environment"

"A softer-than-expected inflation print could support expectations of easier financial conditions. Gold typically benefits from lower interest-rate expectations because they reduce the opportunity cost of holding a non-yielding asset."

"Any rise in the inflation print would hit the US Fed's inflation hopes, which is expected to push gold and silver prices higher."

"A softer reading could strengthen expectations of lower rates and support gold prices."

"markets looked to US inflation data for fresh clues on the Federal Reserve's interest rate path"