Gold flat as investors focus on US CPI data

Sept 13 – Gold prices were flat on Wednesday, trading above a more than two-week low hit in the previous session, as investors awaited U.S. inflation data that could shape expectations around the Federal Reserve‘s interest rate outlook.

FUNDAMENTALS

* Spot gold was flat at $1,912.59 per ounce, as of 0059 GMT, while U.S. gold futures were unchanged at $1,934.80.

* The dollar index was down 0.1% against its peers, lending gold some support after bullion prices dropped on Tuesday to their lowest level since Aug. 25 at $1,906.50.

* The Fed will leave its benchmark overnight interest rate unchanged at the end of its Sept. 19-20 policy meeting and probably wait until the April-June period of 2024 or later before cutting it, according to economists in a Reuters poll.

* Inflation-adjusted income fell and a key poverty measure rose sharply last year as the U.S. economy continued its rocky emergence from a once-in-a-century pandemic, the U.S. Census Bureau reported on Tuesday.

* Japan’s annual wholesale inflation slowed in August for the eighth straight month, data showed on Wednesday.
* The European Central Bank expects inflation in the 20-nation euro zone to remain above 3% next year, bolstering the case for a tenth consecutive interest rate increase on Thursday, a source with direct knowledge of the discussion told Reuters.
* Elsewhere, spot silver eased 0.2% to $23.06 per ounce, platinum fell 0.3% to $907.77 and palladium dropped 0.2% to $1,238.20.

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