Gold climbs on dip buying, Fed hike bets rise after U.S. inflation data - CNBC

AI desk brief

Gold rebounded 1.6% to $4,385.14/oz after Thursday’s nearly 2% drop, with traders buying dips even as stronger U.S. inflation data pushed the market to price an 85% chance of a Fed hike next week, up from 67% before the CPI release. U.S. gold futures rose 0.5% to $4,426.90, and the metal was still down about 1% on the week.

CPI rose 0.4% m/m in August and 3.4% y/y, while PPI came in as expected; the article says higher oil prices are feeding inflation fears and supporting rate-hike bets, which is typically negative for non-yielding bullion. On flows, India demand was subdued by volatility, while investment demand in China remained strong.