Gold prices flat ahead of key US inflation data

Last Update: 2024-08-12 10:00:06 - Source: Shafaq News

Shafaq News/ Gold prices struggledfor momentum on Monday as investors looked forward to a key inflation reportthat could shed more light on the US central bank's next policy move.

Spot gold eased 0.13% to $2,427.86per ounce by 0352 GMT, trading in a narrow $10 price range. US gold futuresslipped 0.3% to $2,466.40.

"I don't think people will wantto make big commitments ahead of the data," said Ilya Spivak, head ofglobal macro, Tastylive.

The US consumer price index (CPI)data, due on Wednesday, is expected to show that headline and core prices rose0.2% month-on-month.

"Further inflation progressreflected in the upcoming CPI data could see gold eye for a retest of itsall-time high once more," said IG market strategist Yeap Jun Rong.

Currently, the market sees a 54%chance of a 50 basis point rate cut at the Federal Reserve's September meeting,according to the CME FedWatch Tool.

Non-yielding bullion's appeal tendsto shine in a low interest rate environment.

Fed Governor Michelle Bowmansoftened her usually hawkish tone ever so slightly on Saturday, noting somefurther "welcome" progress on inflation even as she said inflationremains "uncomfortably above" the central bank's 2% goal.

Elsewhere, Palestinian militantgroup Hamas on Sunday asked mediators to present a plan based upon previoustalks instead of engaging in new negotiations for a Gaza ceasefire deal,raising doubts about its participation in Thursday's meeting.

Among other metals, spot silver fell0.3% to $27.36 per ounce, platinum shed 0.47% to $917.83 and palladium fell0.2% to $903.48.

(Reuters)