Gold prices subdued as market eyes upcoming US data

GOLD prices were flat on Thursday (Sep 12) following the release of the US inflation print, while traders shifted their attention to the upcoming economic data that could impact the Federal Reserve’s policy decision.

Spot gold was subdued at US$2,511.52 per ounce, as at 0031 GMT. US gold futures edged 0.1 per cent lower to US$2,539.20.

Data on Wednesday showed that the US consumer prices gained 0.2 per cent last month, matching the advance in July.

US central bankers will likely start long-awaited interest rate cuts next week with a quarter-of-a-percentage-point reduction, as they seek to reduce the odds of a recession even as stubbornly intact underlying price pressures put them off more aggressive action.

Lower rates reduce the opportunity cost of holding a zero-yield bullion.

Traders’ attention will now turn towards the US Producer Price Index (PPI) reading and initial jobless claims data, which is due at 1230 GMT.

Headline PPI month-over-month is expected at 0.1 per cent, while the year-over-year read is expected at 1.8 per cent. This compares to prints of last month’s 0.1 per cent and 2.2 per cent, respectively.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.20 per cent to 866.18 tonnes on Wednesday.

Spot gold may revisit its Sep 6 high of US$2,529 per ounce, as it has briefly pierced above the last barrier of US$2,521 towards this high, according to Reuters technical analyst Wang Tao.

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Gold prices steady with focus on US inflation data

On the geopolitical front, the UN Palestinian refugee agency UNRWA said six staffers were killed after two airstrikes hit a school in central Gaza on Wednesday, marking what it said was the highest death toll among its staff in a single incident.

Spot silver was steady at US$28.67 per ounce, platinum gained 0.5 per cent to US$955.72 and palladium climbed 1.7 per cent to US$1,025.37. REUTERS