Gold at four-week high

Gold prices rose to their highest in four weeks as inflation and retail sales data from the US supported the possibility of a rate cut. Gold continued to rise for a third day after a slowdown in US inflation raised the possibility of a rate cut in September. Gold traded near its highest level in almost four weeks after rising 1.2% on Wednesday as a key indicator of US inflation cooled for the first time in six months in April. Spot gold fell to $2,387 after reaching its highest level since April 19 on the fourth trading day of the week. Gold has traded in a narrow range for the past few weeks after a sharp rally in mid-April. Meanwhile, the dollar and Treasury yields retreated after the US data yesterday. Swap markets are pricing in a 61% chance that the Fed will cut rates by September, compared with 30% in late April. Gold investors will be following weekly jobless claims, housing starts, industrial production and capacity utilization rates in the US today.