Gold Prices Rise as Investors Weigh Inflation Data and Middle East Tensions

The softer dollar made greenback-priced bullion more affordable for overseas buyers. Investors are currently monitoring key inflation data, including the producer price index and consumer price index, to determine the Federal Reserve's policy outlook. Traders are currently pricing a 60% chance of an interest rate hike at the central bank's next policy meeting. Simultaneously, renewed attacks in the Middle East have influenced prices. Iran's Revolutionary Guard fired ballistic missiles at a U.S. military base in Jordan and attacked 10 ships, following Washington's destruction of five Iranian oil tankers. These events contributed to a rise in Brent crude prices past $100 a barrel for the first time since July 24. Gold continues to serve as a hedge against inflation and a risk-averse investment during periods of economic uncertainty.