Gold slips towards $4,300 amid profit taking ahead of US inflation

Gold futures slipped toward $4300 an ounce in the electronic trades on Friday, with the investors booking profit ahead of the US CPI report, which could provide crucial direction for the Federal Reserve?s policy decision next week. The latest PPI data showed producer inflation accelerating 0.4% month-on-month and 5.4% year-on-year in August, while the escalation in the US-Iran conflict pushed oil prices above $100 a barrel and intensified concerns over renewed inflationary pressures. Fed rate-hike expectations for September consequently strengthened to 65?70% from around 60% previously, although persistent geopolitical uncertainty continued to underpin demand for gold as a hedge against inflation and market risks. The dollar index held steady near 99 on Friday as investors awaited the US CPI report, with stronger rate-hike expectations providing support to the greenback. MCX October gold futures traded 0.2% higher at Rs 152647 per 10 grams.

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