Gold prices edge lower ahead of US inflation data
Investors are awaiting US inflation figures for indications regarding the next policy move by the Federal Reserve.
Gold prices declined in early Asian trade on Tuesday as market participants waited for US inflation data to provide clues on future Federal Reserve policy. According to the Economic Times, spot gold fell 0.3 per cent to $4,128.48 per ounce by 0024 GMT.
US gold futures for December delivery rose 0.6 per cent to $4,137.60. This follows a previous session where gold rose more than 1 per cent on softer oil prices. Brent crude futures fell by more than $7 a barrel after Monday's settlement, reaching their lowest level since late August.
Richmond Federal Reserve President Tom Barkin said on Monday that the US central bank should approach monetary policy with care. He noted that inflation remains the greatest risk and stated he did not have a predetermined view on what actions should be taken at the December meeting.
Traders currently estimate an 84 per cent chance of a rate hike in December, according to the CME FedWatch tool. Higher interest rates can reduce the appeal of non-yielding bullion by increasing the opportunity cost of holding it.
The consumer price index (CPI) report is scheduled for release at 1330 GMT later on Tuesday, with producer price index (PPI) data expected on Friday.
