Gold prices steady with spotlight on US inflation data

Gold prices held steady on Monday, with investors awaiting key U.S. inflation data due later this week to gauge the size of the Federal Reserve‘s likely interest rate cut next month.

FUNDAMENTALS

* Spot gold were little changed at $2,425.94 per ounce, as of 0153 GMT. U.S. gold futures slipped 0.3% to $2,464.80.

* The U.S. producer price index (PPI) is due on Tuesday, followed by consumer price index (CPI) on Wednesday.

* Currently, the market sees about 54% chance of a 50 basis point cut in September, according to the CME FedWatch Tool. Non-yielding bullion’s appeal tends to shine in a low interest rate environment.

* Fed Governor Michelle Bowman softened her usually hawkish tone ever so slightly on Saturday, noting some further “welcome” progress on inflation even as she said inflation remains “uncomfortably above” the central bank’s 2% goal.

* Physical gold demand in India increased slightly last week due to a price correction, though market volatility led some buyers to delay purchases, while premiums in China rose on safe-haven buying.
* Elsewhere, Palestinian militant group Hamas on Sunday asked mediators to present a plan based upon previous talks instead of engaging in new negotiations for a Gaza ceasefire deal, casting doubt on its participation in a Thursday meeting called by the mediators.
* Spot silver fell 0.6% to $27.29 per ounce, platinum edged 0.1% higher to $923.20and palladium was nearly unchanged at $905.00 .

DATA/EVENTS (GMT)

0600 UK Manufacturing Output MM June

0645 France CPI YY NSA July