Gold climbed to USD 4,450 per troy ounce, the highest since early June, before slipping back to USD 4,320. The move left the metal up as much as 10% since the start of the month, as markets pared expectations for further US monetary tightening.
Fed Policy Expectations Ease
Fed Funds futures at the end of July implied a year-end policy rate of 4%, but that pricing has eased to 3.86%, meaning 14 basis points of previously anticipated hikes have been removed.
ETF Inflows Strengthen Gold Demand
Separately, Bloomberg data show gold ETFs recorded inflows for six consecutive trading days, the longest uninterrupted run since April, with purchases totalling almost 21 tons.
