Gold traded near $4,380 an ounce in early Asian hours after a volatile move above $4,400 earlier in the week, as investors awaited U.S. inflation data that could shape the Federal Reserve's next rate decision after it held policy unchanged in July. Supportive factors included higher oil prices, mixed signals over efforts to reopen the Strait of Hormuz, technical buying, Chinese ETF inflows and continued official-sector demand. The People's Bank of China, the country's central bank, added 20 tonnes to reserves in July 2026 after about 15 tonnes in June, extending its buying streak to 21 consecutive months and lifting holdings to about 2,366 tonnes, or roughly 8% of foreign exchange reserves according to the World Gold Council. Because gold does not pay interest, expectations for lower rates tend to support prices, while a firmer inflation reading or a more hawkish policy outlook could pressure bullion.