Gold eases as investors brace for US inflation data

GOLD prices eased during early Asian hours on Tuesday (May 9) as cautious market participants awaited US inflation data that could influence the Federal Reserve’s policy path.

Spot gold fell 0.1 per cent at US$2,020.22 per ounce, as of 0023 GMT. US gold futures were down 0.3 per cent at US$2,027.10.

The dollar index was up 0.1 per cent, making bullion less affordable for overseas buyers.

The US consumer price index (CPI) data is due on Wednesday.

While US consumers said last month they expected slightly lower inflation in a year’s time, the New York Federal Reserve’s report also showed the bank stresses that kicked off in March weren’t weighing heavily on the moods of Americans.

Investors are pricing in a 92 per cent chance of the Fed holding rates at their current level in June.

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Gold prices flat as traders gear up for US inflation data

Treasury Secretary Janet Yellen said on Monday that a failure by Congress to raise the US$31.4 trillion federal debt limit would cause a huge hit to the US economy and weaken the dollar as the world’s reserve currency.

Spot silver slipped 0.2 per cent at US$25.52 per ounce, platinum rose 0.2 per cent to US$1,072.51, while palladium was flat at US$1,553.50. REUTERS