Gold traded higher for a second consecutive session during Thursday's Asian trading, with investors turning their attention to upcoming United States inflation data.
By 4:15 pm AEST (6:15 am GMT), spot gold prices were up 0.3% at US$4,413.36 an ounce.
The U.S. Producer Price Index (PPI) report is due later on Thursday, while the U.S. Consumer Price Index (CPI) is scheduled for release on Friday.
The data will provide further clues on the Federal Reserve's (Fed) policy path, which in turn should influence U.S. dollar (USD) price dynamics and provide fresh impetus to the non-yielding bullion.
According to the CME Group FedWatch Tool, markets are pricing in around a 60.4% chance that the U.S. central bank will raise borrowing costs at its upcoming policy meeting on 15-16 September.
The expectations for a rate hike increased following the stronger-than-expected U.S. Nonfarm Payrolls (NFP) report last Friday.
Additionally, inflation risks stemming from persistently higher energy prices are supporting expectations for immediate Fed tightening.
Crude oil prices touched a fresh three-month high earlier on Thursday as further escalation in tensions between the U.S. and Iran kept the geopolitical risk premium firmly in play.
Traders have also priced in a 25-basis-point (bps) rate hike by the European Central Bank (ECB) later on Thursday and by the Bank of Japan (BoJ) at its 17-18 September meeting.
