Gold’s record run stalls ahead of US inflation print

Gold prices were steady on Tuesday, as traders refrained from taking new positions after bullion‘s record run ahead of U.S. consumer prices data that could offer clues on the Federal Reserve‘s monetary policy trajectory.

FUNDAMENTALS

* Spot gold was flat at $2,182.48 per ounce, as of 0157 GMT, after rising for nine consecutive sessions. Bullion hit a record peak of $2,194.99 on Friday.

* U.S. gold futures were also flat at $2,188.70.

* The dollar held broadly steady on Tuesday, while the yen firmed near a one-month high on mounting expectations that the Bank of Japan could exit negative interest rates as early as next week. [USD/]

* The U.S. consumer price index (CPI) report for February, due at 1230 GMT, is forecast to rise 0.4% for the month and keep the annual pace steady at 3.1%. Core inflation is seen rising 0.3%, which will nudge the annual pace down to the lowest since early 2021 at 3.7%. * Other U.S. economic data this week includes retail sales, producer price index, and weekly initial jobless claims print on Thursday. * Data last week showed signs of a cooling U.S. jobs market, while Fed Chair Powell said they are not far from gaining confidence they need in falling inflation to cut interest rates.

* Traders are pricing in three to four quarter-point (25 bps) U.S. rate cuts, with a 70% chance for the first in June, as per LSEG’s interest rate probability app.

* Lower rates boost the appeal of non-yielding bullion.

* Spot platinum rose 0.5% to $937.60 per ounce, palladium climbed 0.3% to $1,033.35 and silver advanced 0.3% to $24.49.