Gold Prices Hold Steady Ahead of US Data

12 Sep 2024 , 10:08 AM

Gold prices remained unchanged on Thursday following the release of the US inflation report, as traders focused on impending economic data that could influence the Federal Reserve’s policy decisions.

Spot gold was trading at $2,511.52 per ounce. U.S. gold futures fell 0.1% to $2,539.20.

According to data released on Wednesday, consumer prices in the United States rose 0.2% last month, mirroring the increase seen in July.

U.S. central bankers will likely begin long-awaited interest rate decreases next week with a quarter-point cut, as they strive to lessen the likelihood of a recession even as stubbornly strong underlying price pressures deter them from more aggressive action.

Lower rates lower the potential cost of owning zero-yield bullion.

Traders’ focus will now shift to the U.S. Producer Price Index reading and initial jobless claims data, which are both coming at 1230 GMT.

The headline PPI is predicted to rise 0.1% month on month and 1.8% year on year. This compared to previous month’s 0.1% and 2.2%, respectively.

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