PHOTO: REUTERSGOLD edged higher, as traders weighed prospects for a deal to reopen the Strait of Hormuz while awaiting US inflation data that could provide fresh clues on the US Federal Reserve’s interest rate path. Bullion rose as much as 0.6 per cent to near US$4,400 an ounce, a day after pulling back from a two-month high. Interest rate swaps show traders see the odds of a quarter point increase in September as virtually a coin toss. “A softer US dollar and reduced expectations for additional Fed tightening have helped precious metals, but renewed inflation pressure, another oil price surge or stronger US data could quickly revive rate hike expectations,” he said. Gold has rallied above the US$4,000-an-ounce support threshold in recent weeks, with renewed investor appetite for the precious metal backed by an increase in central bank purchases, notably from China.