The gold prices They were little changed on Thursday as investors refrained from big bets ahead of US inflation data, which is expected to provide more clarity on the Federal Reserve’s rate hike path.
Spot gold was up 0.12% at $1,675.40 an ounce by 10:10 GMT. US gold futures were up 0.24% at $1,681.5.
The market estimates that the US Consumer Price Index (CPI), to be published at 12:30 GMT, would stand at 8.1% year-on-year in September.
“If the CPI figures are higher than expected, it will be highly unlikely that the Fed will deviate from its current stance of continuing rate hikes and reducing the balance sheet.”, said Ricardo Evangelista, senior analyst at ActivTrades.
“This will continue to offer support to the dollar and will be detrimental to gold (…) Right now, the upside potential of gold is being limited by the strength of the dollar and is dictating what happens to gold prices”.
Traditionally seen as a hedge against inflation, interest rate hikes to combat rising prices have reduced the appeal of bullion, which does not pay interest.
Fed policymakers agreed they should take a more restrictive stance and maintain it for some time to reduce inflation, minutes from their Sept. 20-21 meeting showed on Wednesday.
Among other precious metals, silver was up 0.2% at $19.09 an ounce, platinum was up 0.6% at $884.38 an ounce and palladium was flat at $2,136.63.
With information from Reuters
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