Gold flat as investors focus on US CPI data
GOLD prices were flat on Wednesday (Sep 13), trading above a more than two-week low hit in the previous session, as investors awaited US inflation data that could shape expectations around the Federal Reserve’s interest rate outlook.
Spot gold was flat at US$1,912.59 per ounce, as at 0059 GMT, while US gold futures were unchanged at US$1,934.80.
The US dollar index was down 0.1 per cent against its peers, lending gold some support after bullion prices dropped on Tuesday to their lowest level since Aug 25 at US$1,906.50.
The Fed will leave its benchmark overnight interest rate unchanged at the end of its Sep 19-20 policy meeting and probably wait until the April-June period of 2024 or later before cutting it, according to economists in a Reuters poll.
Inflation-adjusted income fell and a key poverty measure rose sharply last year as the US economy continued its rocky emergence from a once-in-a-century pandemic, the US Census Bureau reported on Tuesday.
Japan’s annual wholesale inflation slowed in August for the eighth straight month, data showed on Wednesday.
The European Central Bank expects inflation in the 20-nation eurozone to remain above 3 per cent next year, bolstering the case for a tenth consecutive interest rate increase on Thursday, a source with direct knowledge of the discussion told Reuters.
Elsewhere, spot silver eased 0.2 per cent to US$23.06 per ounce, platinum fell 0.3 per cent to US$907.77 and palladium dropped 0.2 per cent to US$1,238.20. REUTERS
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