Gold Steadies Near $4,400 as Traders Weigh Fed Rate-Hike Path

Gold prices steadied near $4,400 an ounce as traders awaited US inflation data for clues on the Federal Reserve's interest rate hike path. The metal has traded in a narrow range in recent weeks, with some investors betting on its long-term value as a portfolio hedge despite near-term headwinds from rising bond yields and escalating tensions in the Middle East. Yields on 10-year Treasuries rose, making it a negative for gold, which doesn't pay interest. The muted reaction came after benchmark Brent crude prices hit $100 a barrel for the first time since July, highlighting concerns around inflation. Iran said it was prepared for a more intense conflict if the US continues to attack its territory and infrastructure. With the Middle East war in its seventh month, the risk of continued disruptions to energy supplies from the region remains high. Investors will be keeping tabs on the US producer price index and consumer price index this week ahead of the central bank's next meeting on September 14-15. Swaps traders are currently pricing in a roughly 65% chance of a rate hike. Spot gold was steady at $4,400.32 an ounce at 7:22 a.m. in Singapore, while silver was little changed at $67.29 an ounce. Platinum and palladium edged higher. The Bloomberg Dollar Spot Index, a gauge of the US dollar, fell 0.1%. The US producer price index is expected to be released on Thursday, while the consumer price index will be released on Friday.