Gold prices edged lower on Thursday as the US dollar gained, though bullion remained near record-high levels as traders awaited more economic data out of the US that could steer hopes for a mid-year rate cut by the Federal Reserve.
Spot gold fell 0.2 percent to $2,171.05 per ounce. US gold futures also dipped 0.2 percent to $2,175.40.
The US dollar index gained 0.1 percent . A firmer dollar makes gold more expensive for other currency holders.
Investors await US retail sales data, the producer prices index (PPI) report and jobless claims due later in the day to gauge the US economy’s health and if it will deter the Fed from cutting rates in June.
“There was a mini pullback in gold prices after US CPI data release, but it doesn’t change the market’s view by much on US monetary policy, and with today’s PPI data – if the core annual figure reading appears near expectations, I still reckon that gold price could remain supported,” Kelvin Wong, a senior market analyst for Asia Pacific at OANDA, said.
Traders see a 67 percent chance of a June rate cut, according to LSEG’s interest rate probability app, down from 72 percent before data suggested some stickiness in inflation.
