Gold steadied around $4,350 an ounce on Friday after a sharp previous-session drop, with investors taking profits while weighing softer U.S. inflation data, the Federal Reserve outlook and unresolved Middle East tensions. July producer prices rose less than expected after Wednesday's subdued CPI report, reinforcing the view that price pressures are not broadly reaccelerating and helping cut market-implied odds of a 25 basis point Fed rate increase in September to about 35% from 55% a week earlier. Bullion had earlier climbed above $4,440 on Aug. 12, its highest since June 5, and support has also come from continued investor demand, central-bank buying including China's roughly 20-tonne reserve addition in July, and fears that any renewed disruption around the Strait of Hormuz could lift energy prices and reignite inflation. Global central banks bought an estimated 289 tonnes of gold in the second quarter, underscoring steady official-sector demand even as traders reassess whether the latest pullback is profit-taking rather than a break in the broader recovery.