Gold Little Changed with US Inflation on Tap
Gold prices were little changed on Tuesday as investors exercised caution ahead of a key U.S. inflation reading on Wednesday that could influence the Federal Reserve's policy decision next week.
Spot gold was steady at $2,506.59 per ounce by 1031 GMT. U.S. gold futures were little changed at $2,535.20.
The U.S. consumer price index for August is expected to have risen 0.2% on a month-on-month basis, according to a Reuters poll, unchanged from the previous month.
The Fed looks set to cut interest rates at its meeting next week, with further cuts likely to boost ETF (exchange-traded fund) inflows and drive gold to $2,600/oz by year-end, UBS analyst Giovanni Staunovo said.
Markets are currently pricing in a 73% chance of a 25 basis point U.S. rate cut on Sept. 18, and a 27% chance of a 50 bps cut, the CME FedWatch tool showed.
Zero-yield bullion tends to be a preferred investment amid lower interest rates.
Spot silver rose 0.2% to $28.39 per ounce.
Platinum gained 0.5% to $942.75 and palladium was up by 1.2% to $958.25.
A surge in sales of hybrid cars as electric vehicle take-up slows is set to provide an unexpected boost to demand for platinum group metals in the coming years.
Source : Reuters
