Gold traders in wait-and-watch mode ahead of US inflation data

GOLD prices were steady on Thursday (Nov 10) as cautious investors held to the sidelines and awaited key US inflation report to gauge the size of the Federal Reserve’s future interest rate hikes.

Spot gold was flat at US$1,705.77 per ounce, as of 0032 GMT. US gold futures fell 0.3 per cent to US$1,709.20.

The US consumer price index (CPI) report for October due at 1330 GMT could likely provide some cues on the Federal Reserve’s rate hike plan.

Economists are expecting a deceleration in both the monthly and yearly core inflation to 0.5 per cent and 6.5 per cent, respectively.

Rising interest rates increase the opportunity cost of holding bullion while lifting returns on other yielding assets.

Federal Reserve Bank of New York president John Williams welcomed the relative stability of longer-term inflation expectations on Wednesday while signalling some puzzlement over data showing a notable number of Americans expect an outright decline in price pressures at some point.

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Gold steadies near 1-month peak ahead of US inflation data

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Inflation expectations among eurozone consumers continued to rise in September, even as economic growth and income forecasts declined markedly, a new European Central Bank survey showed on Wednesday.

Spot silver was flat at US$21.00. Platinum rose 0.1 per cent to US$985.90 and palladium was up 0.2 per cent to$1,867.75. REUTERS