Gold holds near six-month low as investors await US inflation data

Gold prices traded sideways on Thursday near their lowest level in six months, with investors waiting for the U.S. Producer Price Index report and fresh signals on the Federal Reserve's policy direction. Spot gold rose 0.1% to $4,077.39 an ounce by 04:29 GMT, after touching $4,022.09, its weakest point since November 21. August U.S. gold futures fell 0.8% to $4,098.90. The market's caution follows May data showing U.S. consumer inflation recorded its fastest annual rise in three years, driven by higher energy costs. According to the CME Group's FedWatch tool, traders have priced in a more than 70% probability of a Fed rate increase by December. Among other precious metals, silver slipped 0.1% to $63.64 an ounce, platinum held steady at $1,663.80, and palladium gained 2.3% to $1,241.77.