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14.08.202600:20:33UTC+00Gold Steadies After Sharp Drop

Gold held near $4,350 an ounce on Friday after a sharp decline in the previous session, as investors locked in profits and weighed the Federal Reserve’s policy outlook alongside developments in the Middle East. Data released on Thursday showed that US producer prices rose less than expected in July, reinforcing signs that inflationary pressures are not broadly intensifying following Wednesday’s subdued CPI reading. The softer inflation data has eased near-term pressure on the Fed to raise interest rates, with markets now assigning roughly a 35% probability to a 25-basis-point hike in September, down from 55% a week earlier. At the same time, diplomatic efforts to reopen the Strait of Hormuz remain stalled, keeping investors on edge over the risk of an escalation that could push energy prices higher and potentially reignite inflationary pressures.

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