Gold trades steady as investors await US inflation data

Gold trades steady as investors await US inflation data

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.

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