By Daksh Grover
BENGALURU- Gold prices struggled for momentum on Monday as investors looked forward to a key inflation report that could shed more light on the US central bank’s next policy move.
Spot gold eased 0.13 percent to $2,427.86 per ounce, trading in a narrow $10 price range.
US gold futures slipped 0.3 percent to $2,466.40.
“I don’t think people will want to make big commitments ahead of the data,” said Ilya Spivak, head of global macro, Tastylive.
The US consumer price index (CPI) data, due on Wednesday, is expected to show that headline and core prices rose 0.2 percent month-on-month.
“Further inflation progress reflected in the upcoming CPI data could see gold eye for a retest of its all-time high once more,” said IG market strategist Yeap Jun Rong.
Currently, the market sees a 54 percent chance of a 50 basis point rate cut at the Federal Reserve’s September meeting, according to the CME FedWatch Tool.
Non-yielding bullion’s appeal tends to shine in a low interest rate environment.
Fed Governor Michelle Bowman softened her usually hawkish tone ever so slightly on Saturday, noting some further “welcome” progress on inflation even as she said inflation remains “uncomfortably above” the central bank’s 2 percent goal.
