Spot ​gold added 1.4% to $4,414.30 per ounce

Gold climbed more than ‌1% on Wednesday as the dollar remained under pressure, while investors awaited U.S. inflation data this week that would provide clues to the central bank’s monetary policy amid an oil price rally.

Spot ​gold added 1.4% to $4,414.30 per ounce by 1744 GMT, while U.S. ​gold futures for December delivery rose 0.5% to settle at $4,458.80.

There has been ⁠a bit of supportive scenario for the gold market as the dollar has been ​under some light pressure as of late, said David Meger, director of metals trading at ​High Ridge Futures.

The dollar hovered near a two-week low, making dollar-denominated gold less expensive for holders of other currencies, as traders grappled with oil prices breaking above $100 per barrel in the face of a ​widening war in the Middle East.

This time, higher oil prices have an inflationary push but ​the reason, i.e. freight and supply chain disruption, is leading to higher bond rates because overall monetary ‌policy ⁠is aimed more closely at containing inflation than it has at times been in the past, said Rhona O’Connell, head of market analysis at Stone X.

The benchmark U.S. 10-year Treasury yields jumped to its highest level since November 2023 before easing.

Traders are awaiting U.S. producer price ​index data due on ​Thursday and consumer ⁠inflation figures on Friday for clues on whether the central bank will hike interest rates to contain prices pressures.

The market is pricing about ​a 60% chance of an interest rate hike at the central ​bank’s policy ⁠meeting next week, according to the CME FedWatch Tool.

Among other metals, spot silver rose 3.3% to $67.91 per ounce, platinum jumped 5.1% to $1,906.20, and palladium added 1.2% to $1,365.50.

The international platinum market will swing ⁠to ​a surplus for the first time since 2022 this ​year due to weaker investment and jewellery demand, the World Platinum Investment Council said.