Gold prices remained stable on Wednesday as investors anticipated incoming important U.S. inflation data for clues on the extent of interest rate cuts expected from the Fed next week.
Spot gold was up 0.1% to $2,517.80 per ounce. U.S. gold futures increased by 0.1% to $2,546.50.
Traders are eagerly watching the U.S. Consumer Price Index (CPI) data, which is due later in the day, as well as the Producer Price Index reading and initial unemployment claims on Thursday.
According to a Reuters survey, the headline CPI is forecast to rise 0.2% month on month in August, matching the July rate. However, on a year-over-year basis, it appears to have increased only 2.6%, down from 2.9% in July.
A majority of economists polled by Reuters expect the Fed to decrease interest rates by 25 basis points at each of its three remaining policy meetings in 2024.
Lower rates lower the potential cost of owning zero-yield bullion.
Following a mixed August jobs data, the probability of a half-point rate cut next week momentarily exceeded 50% before falling to approximately 35%.
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