Gold prices were little changed on Wednesday with caution ahead of the release of key US inflation data that may influence the pace of interest rate hikes by the Federal Reserve.
Sharjah 24 – Archyde.com:
Gold settled, on Wednesday, in spot transactions at $1,793.78 an ounce, by 10:32 GMT, after hitting its highest level since July 5 at $1800.29 on Tuesday. US gold futures fell 0.1% to $1,809.90.
“If the numbers confirm that inflation is on the way to ease, that could reduce the possibility of higher interest rates in the United States,” said Ole Hansen, analyst at Saxo Bank, which will eventually support gold, attributing a slight pressure on prices earlier in the session to take profits.
Economists expect annual inflation in the United States to decline to 8.7% last month from 9.1% in June, and the data is scheduled to be released at 12:30 GMT.
Although gold is considered a hedge against inflation, recession risks and political uncertainty, high interest rates in the US weaken the attractiveness of the non-yielding yellow metal.
The Federal Reserve has raised interest rates by 225 basis points since March, as officials try to stem high inflation.
As for other precious metals, silver fell in spot transactions 0.2% to $ 20.46 an ounce, while platinum fell 0.1% to $ 932.55, and palladium fell 0.3% to $ 2208.09.