Shafaq News/ Gold prices edged loweron Wednesday as investors remained on the sidelines ahead of a key US inflationreport later in the day that could set the tone for the Federal Reserve'sSeptember policy meeting.
Spot gold eased 0.2% to $2,460.89per ounce by 0537 GMT. Prices had hit a record high of $2,483.60 last month.
US gold futures edged 0.3% lower to$2,500.10.
US consumer price index data forJuly is due at 1230 GMT and expected to show month-on-month inflationaccelerated to 0.2%, with the annual core slowing a tick to 3.2%. Retail salesdata is scheduled for Thursday.
Gold might drop to $2,300 if the(CPI) data doesn't align with expected rate cuts, but in the long term, bullionis likely to rise as the US economy weakens enough for the Fed to cut ratessignificantly, said Kyle Rodda, a financial market analyst at Capital.com.
Data on Tuesday showed that USproducer prices increased less than expected in July, reinforcing market viewthat cooling inflation will allow the Fed to cut rates soon.
Traders see a 54% chance of a50-basis-point rate cut in September, according to the CME FedWatch Tool.
Atlanta Fed President Raphael Bosticsaid he wants to see "a little more data" before he's ready tosupport lowering rates.
Gold, often used as a hedge againstgeopolitical risks, thrives when interest rates are low.
Investors are largely buying gold inanticipation of a retaliatory strike from Iran, but they unwind those positionsif the strike doesn't occur, added Rodda.
Only a ceasefire deal in Gazastemming from hoped-for talks this week would hold Iran back from directretaliation against Israel for the assassination of Hamas leader Ismail Haniyehon its soil, three senior Iranian officials said.
Spot silver fell 0.4% to $27.73 andplatinum shed 0.5% to $931.50.
Palladium was up 0.3% at $941.00after hitting its highest level since July 24 in the previous session.
(Reuters)