From The Economic Times · Reuters · · 1m 20s
Gold Dips Ahead of US Inflation Data
Gold prices fall as investors await US inflation report for Federal Reserve policy clues.
In brief
Gold prices fall as investors await US inflation report for Federal Reserve policy clues. Spot gold dropped 0.3% to $4,128.48 per ounce ahead of US inflation data. Originally reported by The Economic Times.
Spot gold falls
Spot gold fell 0.3% to $4,128.48 per ounce by 0024 GMT after rising more than 1% in the previous session on softer oil prices.
US gold futures rise
US gold futures for December delivery rose 0.6% to $4,137.60.
Investors await US inflation data
Gold prices edged lower in early Asian trade on Tuesday as investors awaited US inflation data later in the day for clues on the Federal Reserve's next policy move.
Federal Reserve policy stance
Richmond Federal Reserve President Tom Barkin said the central bank should move monetary policy with care as it maps a response to inflation that remains its greatest risk.
Market expectations for Fed rates
Traders currently see an 84% chance that the Fed will raise rates in December, according to CME's FedWatch tool.
Higher interest rates impact
Higher interest rates increase the opportunity cost of holding non-yielding bullion, reducing its appeal to investors.
US inflation data schedule
The consumer price index report is due at 1330 GMT later in the day, followed by the producer price index data on Friday.
The big picture
Spot gold dropped 0.3% to $4,128.48 per ounce ahead of US inflation data.
