Gold prices flat as markets await US CPI data

Gold prices were flat during early Asian trading on Wednesday as market participants hunkered down for US consumer price data that could shape expectations for the Federal Reserve's next policy decision.

Fundamentals

Spot gold was little changed at $4,161.05 per ounce by 0011 GMT. US gold futures rose 0.2% to $4,185.00.

The US Consumer Price Index (CPI) report is due at 1230 GMT, followed by the Producer Price Index (PPI) and retail sales data on Thursday.


According to CME's FedWatch Tool, markets are pricing in a 23% chance of a US rate hike this month and an 88% probability of an increase in December.

Gold, which pays no interest, typically comes under pressure when interest rates remain elevated.

New York Fed President John Williams reaffirmed his view that the US central bank may need to raise interest rates once more this year in its bid to lower inflation.

Meanwhile, Fed Governor Christopher Waller said that the recent rise in US bond yields reflects stronger economic growth rather than higher inflation expectations, which remain "well anchored".

The International Monetary Fund on Tuesday flagged significant growth and financial stability risks from a potential ending of the AI investment boom, growing debt levels and a prolonged Middle East conflict.

An administrative building belonging to Saudi Arabia's state-owned oil company Saudi Aramco in the eastern city of Dhahran was attacked, the Energy Ministry said, as fighting between Yemen's Iran-allied Houthis and the kingdom intensified.

Among other metals, spot silver eased 0.5% to $59.12, platinum fell 0.4% to $1,656.08 and palladium lost 0.1% to $1,124.39.

Data/Events (Gmt)

0130 China PPI YY Sep

0130 China CPI YY Sep

1230 US Core CPI MM, SA Sep

1230 US Core CPI YY, NSA Sep

1230 US CPI MM, SA Sep

1230 US CPI YY, NSA Sep

1230 US CPI Wage Earner Sep

N/A China Exports YY Sep

N/A China Imports YY Sep

N/A China Trade Balance USD Sep