Gold prices were flat on Thursday as investors refrained from making big bets ahead of US inflation data, which could hint at further interest rate hikes, as the mid-term elections continue to be assessed. mandate in the country.
* As of 0939 GMT, spot gold was trading flat at $1,708.11 per ounce, while US gold futures were down 0.2% at $1,709.60.
* “Uncertainty over the election outcome has offered some support to the safe-haven metal; on the other hand, the CPI release will likely provide more clarity on the pace of the Fed’s rate hike,” said Ricardo Evangelista, senior analyst at ActivTrades.
* The US Consumer Price Index (CPI) for October will be released at 1330 GMT. Economists expect core inflation to decline in both monthly and yearly terms.
* Although gold is considered a hedge against inflation, it is highly sensitive to rate hikes as they increase the opportunity cost of holding non-interest bearing bullion.
* In other precious metals, silver was up 0.4% at $21.09; platinum was up 0.7% at $992.75; and palladium was down 0.5% at $1,856.25.