Gold prices settled into a holding pattern on Tuesday as investors awaited US inflation figures that could provide an updated view on interest rates after the Federal Reserve kept the door open for further policy tightening.
Spot gold was flat at $1,922.30 per ounce while US gold futures eased 0.1 percent to $1,946.10.
Market activity is likely to be broadly subdued until the US Consumer Price Index (CPI) data is out on Wednesday, which could provide guidance on US interest rates after a widely expected pause by the Fed next week.
“A CPI number coming in in-line or even slightly higher would likely place some short-term pressure on gold,” said Nicholas Frappell, global head of institutional markets at ABC Refinery.
Americans’ overall views on inflation were little changed in August, even as they predicted higher prices for essentials such as rent and food, the New York Fed reported on Monday.
Markets are pricing in a 93 percent chance of the Fed holding rates steady at their Sept. 19-20 policy meeting, but there’s a 41 percent chance of a hike in November, according to CME’s FedWatch tool. – Reuters
