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Gold prices hold steady ahead of CPI Data

Gold prices held firm on Tuesday as market players brace for the release of U.S. Consumer Price Index (CPI) data later in the day. The annual inflation rate is expected to cool further to 3.3% …

Gold prices held firm on Tuesday as market players brace for the release of U.S. Consumer Price Index (CPI) data later in the day.

The annual inflation rate is expected to cool further to 3.3% from 3.7% in September, which could boost risk appetite if confirmed.

‘A read above expectations should bring Fed hawks back to the market and increase the bets of a rate hike in December. But activity on Fed funds futures gives around 85% chance for a no rate hike in the Fed’s December meeting, and the inflation numbers must look very bad to reverse that expectation,’  said Swissquote Bank’s Ipek Ozkardeskaya.

Last Friday saw substantial profit-taking in the gold market, driving prices to a low not seen in over three weeks. The spectre of prolonged higher U.S. interest rates continues to cast a shadow on gold’s prospects.

On Monday the yellow metal regained some of its recent losses rallying to $1,949.56

As of 10:50 GMT, spot gold was trading at $1,947.03.

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