Gold Wavers as Traders Weigh Fed Rate Path Before Inflation Data

Gold wavered as investors weighed the outlook for US interest rates ahead of a key inflation report later this week.

Bullion traders were excited at the prospects of a rate cut by the Federal Reserve next month after Chair Jerome Powell cautiously opened the door to easing policy, citing rising risks in the US labor market. Lower borrowing costs tend to benefit the precious metal, as it doesn’t pay interest.

Swap traders now see a more than 80% chance the Fed will reduce rates next month, though beyond September there’s still a high degree of uncertainty, as the Fed also ...