Gold Hits Week-High as Investors Eye Fed's Next Move

Gold prices have risen to their highest level in a week as investors anticipate crucial U.S. economic data releases, particularly the Producer Price Index (PPI) and Consumer Price Index (CPI). These reports are expected to provide insights into inflation trends and potentially influence the Federal Reserve’s monetary policy decisions. Despite a slight drop last week, gold is trading near $2,470 an ounce, supported by expectations of potential interest rate cuts, strong central bank purchases, and robust Chinese consumer demand. The market is closely watching for signs that could reinforce predictions of the Fed pivoting towards monetary easing, although some officials, like Fed Governor Michelle Bowman, still express concerns about inflation risks.