Gold prices edge lower ahead of US inflation print
US CPI data due on Wednesday, PPI on Thursday
August's headline CPI is expected to rise 0.2% on m/m basis
Traders see 70% chance of 25-bps Fed rate cut this month
Add details, comments and update prices
By Daksh Grover
Sept 10 (Reuters) -Gold prices eased on Tuesday, pressured by a firmer dollar, while traders braced for key U.S. inflation figures that could offer hints about the size of the Federal Reserve's interest rate reduction next week.
Spot gold XAU= dipped 0.1% to 2,503.09 per ounce, as of 0301 GMT. U.S. gold futures GCcv1 remained steady at $2,532.20.
The dollar .DXY hit a 1-week high, making gold more expensive for other currency holders. USD/
Market attention will turn towards U.S. Consumer Price Index (CPI) data on Wednesday and the Producer Price Index (PPI) reading on Thursday.
The headline CPI is expected to have risen 0.2% on a month-on-month basis in August, according to a Reuters poll, unchanged from July.
"The inflation data is expected to reflect further disinflation and offer the go-ahead for the Fed to ease rates... Barring any significant surprises in the data, gold prices should remain well-supported above the $2,500 level. We expect gold prices to touch over $2,660 in the coming months," IG market strategist Yeap Jun Rong said.
"Gold prices remain locked in its consolidation phase within a broader upward trend for now, as gains were capped by a slight rebound in the US dollar."
Lower interest rates reduce the opportunity cost of holding a zero-yield bullion.
The Fed is all but certain to ease rates when it meets next week, with traders pricing in a 70% chance of a 25-basis-point cut versus a 30% chance of a 50-bp reduction, according to the CME FedWatch Tool.
According to a New York Federal Reserve reportreleased on Monday, the U.S. public's expectations for inflation remained stable last month, even as current price pressures continued to ease.
Spot silver XAG= fell 0.3% to $28.27 per ounce, platinum XPT= gained 0.5% to $942.45 and palladium XPD= was up by 0.4% to $950.55.
Spot gold price in USD per oz https://reut.rs/3zdrJrA
Reporting by Daksh Grover in Bengaluru; Editing by Sherry Jacob-Phillips and Sumana Nandy
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
