Gold flat ahead of US inflation data
Gold remained flat after rising ahead of US inflation data, which could shed light on the US Federal Reserve’s (Fed) interest rate route.
Gold has been trading in a very narrow range for the last few weeks, following the sharp rise in which it broke consecutive records in March and April. Gold, on the other hand, has increased by nearly 14 percent this year, with gains supported by central bank purchases, rising geopolitical risks and consumer demand in China.
Gold remains flat at $2,362 per ounce ahead of the core consumer price index to be announced in the US today.
The data is expected to show that headline inflation in the US softened in April, possibly for the first time in six months, and is expected to support the possibility of a rate cut this year.
While the Producer Price Index (PPI) announced in the USA yesterday increased above expectations with 0.5 percent on a monthly basis in April, the increase on an annual basis was within expectations with 2.2 percent. In his statement after the data in question, US Federal Reserve (Fed) Chairman Jerome Powell stated that the headline data in PPI was high, but the previous data were revised downwards, and described the data as “mixed”.