Gold edges higher ahead of US inflation data release

Gold bars

Gold prices rose slightly during Thursday's trading after falling below the $4,000-per-ounce level for the first time in seven months in the previous session, pressured by growing expectations that US interest rates will be raised this year to combat elevated inflation stemming from the Iranian war.

Meanwhile, the US Dollar Index, which measures the greenback against a basket of six major currencies, slipped 0.1% to 101.49 points, though it remained near its highest level in more than a year.

According to the CME FedWatch Tool, investors expect the US Federal Reserve to raise interest rates three times this year, with markets pricing in a 67% probability of another rate hike at the September meeting.

Markets are awaiting the release today of the Federal Reserve’s preferred inflation gauge, as well as the final reading of US first-quarter GDP and the weekly jobless claims report, for further insight into the health of the US economy.