Gold stays firm as markets await US inflation figures

what happened

Gold prices remained steady on Wednesday ahead of the US consumer price index report, according to Newsmetry API. Spot gold stood at $4,165.25 per ounce as of 0447 GMT, while US gold futures for December delivery rose 0.3% to $4,188.70.

Saudi Arabia’s Energy Ministry said an administrative building belonging to Saudi Aramco in Dhahran had been attacked. Oil prices moved higher as fighting intensified between the kingdom and Yemen’s Iran-allied Houthis.

Ilya Spivak of Tastylive said gold was trading within a range, but its ability to hold those levels while oil rallied suggested the metal was seeking a catalyst to rise. The US CPI report is due at 1230 GMT, followed by PPI and retail sales data on Thursday. Markets see a 22% chance of a US rate increase this month and an 88% probability of a December hike, according to CME’s FedWatch Tool.

Spot silver fell 0.2% to $59.33 per ounce, platinum was steady at $1,663.16 and palladium gained 0.7% to $1,133.49.

why it matters

Inflation data could alter expectations for Federal Reserve policy and affect demand for non-yielding bullion. Higher interest rates generally reduce gold’s appeal, while signs of weaker economic momentum may support the metal.

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