Gold Edges Higher Ahead of U.S. CPI Data
Gold edges higher in the early Asian session. Key development is today's release of U.S. CPI, XS.com's Rania Gule says in an email. "Inflation remains the core variable steering the Fed's monetary policy, and therefore directly impacts market sentiment toward safe-haven or risk-on assets," the senior market analyst says.
Should inflation be hotter than expected, expectations of a Fed rate cut in September may be scaled back, strengthening USD and putting downward pressure on gold. On the other hand, weak inflation readings would boost the case for Fed rate cuts and be strongly supportive of gold, Gule adds.
Spot gold is 0.1% higher at $3,345.26/oz.
Source : Dow Jones Newswires
