Gold eases as investors eye US inflation data

News

Gold prices edged lower on Tuesday as a stronger dollar crimped bullion’s appeal ahead of US inflation data that could offer cues on the possible timeline for the Federal Reserve‘s tapering.

FUNDAMENTALS
Spot gold fell 0.2% to $1,790.74 per ounce by 0138 GMT.

US gold futures eased 0.1% to $1,792.10.

The dollar index was steady after hitting a two-week high on Monday, making gold more expensive for holders of other currencies.

US consumer price data is due at 1230 GMT. Economists expect core CPI, an index which strips out volatile energy and food prices, to have risen 0.3% in August from July.

Expectations of US consumers for how much inflation will change over the next year and the coming three years rose last month to the highest levels since 2013, according to a survey released on Monday by the New York Federal Reserve.

Inflation in the euro area will “in all likelihood” ease as soon as next year but the European Central Bank is ready to act if it does not, ECB policymaker Isabel Schnabel said on Monday.

A city in China’s southeastern province of Fujian has closed cinemas and gyms, sealed off some entries and exits to highways and told residents not to leave town as it battles a local COVID-19 outbreak.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.2% to 1,000.21 tonnes on Monday from 998.17 tonnes on Friday.

Silver fell 0.1% to $23.70 per ounce,

was down 0.1% at $959.71 and palladium rose 0.3% to $2,092.64.

Articles You May Like

Brent up 2.6% as oil prices rise for fourth week amid US sanctions
NZDUSD: A lot of chop in the trading this week, but the sellers are still in control
Gold Price Today: Yellow metal prices rally by Rs 1,500/10 gm in a week, silver trades flat
Oil rises as US inventory declines heighten supply concerns
AUDUSD traded to lowest level since 2020, but bounced. Closing near 100/200 hour MAs

Leave a Reply

Your email address will not be published. Required fields are marked *