Gold steadies near two-month high after US inflation print

Gold held near a two-month high on Thursday after U.S. annual inflation eased to 3.4% in July, reducing expectations of a Federal Reserve rate increase in September. Spot gold traded at $4,408.55 an ounce, while U.S. gold futures for December delivery were at $4,467. The U.S. Labor Department said the consumer price index fell from 3.5% in June to 3.4% in July, in line with economist forecasts. Market pricing for a Fed rate hike in September dropped to 40% from 54% a week earlier, supporting non-yielding bullion. Traders were awaiting the U.S. producer price index release later in the session for further signals on the inflation and rate path. Among other precious metals, silver rose to $65.47 an ounce, while platinum slipped to $1,749.70 and palladium fell to $1,362.10.