Gold futures retreated toward $4300 an ounce in electronic trading on Friday, as investors liquidated positions in anticipation of the US CPI report, which is expected to significantly influence the Federal Reserve’s forthcoming policy decision. August producer inflation data revealed an acceleration of 0.4% month-over-month and 5.4% year-over-year, while heightened tensions in the US-Iran conflict propelled oil prices above $100 a barrel and exacerbated apprehensions regarding resurgent inflationary pressures. The probability of a Federal Reserve rate increase in September subsequently advanced to 65–70% from approximately 60% earlier, although ongoing geopolitical uncertainty continued to bolster demand for gold as a safeguard against inflation and market-related vulnerabilities. The dollar index remained stable near 99 on Friday, pending the release of the US CPI report, with elevated rate-hike expectations providing resilience to the greenback. MCX October gold futures were valued at Rs 152647 per 10 grams, reflecting a 0.2% increase.