Gold eases as investors eye U.S. inflation data

Spot gold fell 0.2% to $1,790.74 per ounce

  
American gold bars stand on display during a preview of "Gold", a new exhibition dedicated to the highly prized mineral at the American Museum of Natural History in New York, November 15, 2006.

American gold bars stand on display during a preview of "Gold", a new exhibition dedicated to the highly prized mineral at the American Museum of Natural History in New York, November 15, 2006.

REUTERS/Mike Segar

Gold prices edged lower on Tuesday as a stronger dollar crimped bullion's appeal ahead of U.S. inflation data that could offer cues on the possible timeline for the Federal Reserve's tapering.

FUNDAMENTALS

Spot gold fell 0.2% to $1,790.74 per ounce by 0138 GMT.

U.S. gold futures eased 0.1% to $1,792.10.

The dollar index was steady after hitting a two-week high on Monday, making gold more expensive for holders of other currencies.

U.S. consumer price data is due at 1230 GMT. Economists expect core CPI, an index which strips out volatile energy and food prices, to have risen 0.3% in August from July.

Expectations of U.S. consumers for how much inflation will change over the next year and the coming three years rose last month to the highest levels since 2013, according to a survey released on Monday by the New York Federal Reserve.

Inflation in the euro area will "in all likelihood" ease as soon as next year but the European Central Bank is ready to act if it does not, ECB policymaker Isabel Schnabel said on Monday.

A city in China's southeastern province of Fujian has closed cinemas and gyms, sealed off some entries and exits to highways and told residents not to leave town as it battles a local COVID-19 outbreak.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.2% to 1,000.21 tonnes on Monday from 998.17 tonnes on Friday.

Silver fell 0.1% to $23.70 per ounce, platinum was down 0.1% at $959.71 and palladium rose 0.3% to $2,092.64. DATA/EVENTS (GMT) 0600 UK Claimant Count Unem Chng Aug 0600 UK ILO Unemployment Rate July 1230 US CPI MM, SA Aug (Reporting by Eileen Soreng in Bengaluru; Editing by Devika Syamnath)

© Reuters News 2021

More From Commodities