Spot Gold was mostly flat on Tuesday, following a sizeable drop in the prior session, ahead of the key US CPI inflation report that may provide further clues over the Federal Reserve’s monetary easing path.
Annual core CPI inflation probably picked up to 3% in July, according to market consensus, from 2.9% in June.
Markets are now pricing in an 85% chance of a 25 basis point rate cut in September amid signs of a weakening labor market.
“Market participants now will be definitely focusing on the upcoming Fed rate cut, which has been more or less priced in for September. If we start to see the core CPI data came in slightly below expected, that could actually further support these rate-cut expectations,” OANDA senior market analyst Kelvin Wong was quoted as saying by Reuters.
“That could lower the cost of holding gold and the long-term U.S. 10-year treasury yield still remains below certain key resistance level, so that could actually support gold prices.”
Spot Gold was last little changed on the day to trade at $3,344.34 per troy ounce.
The yellow metal retreated 1.6% on Monday, after US President Trump said tariffs would not be imposed on imported gold bars.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
