Gold Holds $4300 Support as CPI Data Boosts Fed Rate Hike Odds

Gold and silver prices rose on Friday after Thursday’s inflation-driven selloff. Spot gold traded near $4347 an ounce, up 0.73%, while silver reached $64.26, gaining 1.28%. Markets priced in an 85-90% chance of a 25-basis-point Fed rate hike next week following the August CPI report. U.S. and European equities closed higher as oil retreated and the dollar eased. The S&P 500 gained 0.9% and the Dow rose 1.0%. The 10-year Treasury yield held near 4.95%, with Brent crude falling 3% to around $104 per barrel. Technically, gold defended the $4319-4230 zone and its 50-day moving average at $4269. Bulls target resistance at $4396-4489. Silver held above $62, with the next aim at $65.60. Geopolitical risks in the Strait of Hormuz keep oil and inflation expectations elevated.