Gold prices edge lower ahead of US inflation data
Investors are awaiting US inflation reports to gain insight into the next policy moves by the Federal Reserve.
Gold prices declined in early Asian trade on Tuesday as market participants waited for US inflation data to understand potential Federal Reserve policy shifts, according to the Economic Times.
Spot gold fell 0.3 per cent to $4,128.48 per ounce by 0024 GMT. This follows a previous session where prices rose more than 1 per cent due to softer oil prices.
US gold futures for December delivery increased 0.6 per cent to $4,137.60. Meanwhile, 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 carefully because inflation remains its biggest risk. Barkin stated he did not have a specific expectation for the December meeting.
The consumer price index (CPI) report is scheduled for 1330 GMT later today, with producer price index (PPI) data expected on Friday. Traders currently estimate an 84 per cent chance of a rate hike in December, according to the CME FedWatch tool.
Other metals also saw declines, with spot silver falling 0.3 per cent to $53.25 per ounce, platinum dropping 0.3 per cent to $1,572.28, and palladium decreasing 0.9 per cent to $1,032.21 per ounce.
