The August CPI data is expected to show a slowdown in inflation, which could potentially lead to a pause in the Federal Reserve’s interest rate hikes. This expectation is driving investor sentiment towards gold, as it is seen as a safe haven asset during times of economic uncertainty. Gold prices have been on a steady upward trend in recent months, driven by several factors, including:

* **Inflationary pressures:** Rising inflation has led to a flight to safety, with investors seeking gold as a hedge against inflation.

The Indian gold market is currently experiencing a surge in demand, fueled by rising inflation and a weaker rupee. This surge is translating into higher prices for gold, making it a preferred investment during uncertain economic times. However, the upcoming US CPI data release could significantly impact gold prices. This data is crucial because it reflects the current state of inflation in the US, and its implications are likely to ripple through global markets. If the CPI data reveals stronger-than-expected inflation, it could trigger a further surge in gold prices, as investors seek safe havens.

This range is likely to continue for the next few days.