GOLD prices eased on Tuesday (Aug 13) but hovered near a one-week high, while markets awaited key US inflation data that could provide further insight into the US Federal Reserve’s next policy decision.
Spot gold fell by 0.2 per cent to US$2,466.69 per ounce, as at 0155 GMT, after hitting its highest since Aug 2 earlier in the session.
US gold futures rose 0.1 per cent to US$2,506.90.
Traders are waiting for the July US producer price index due later in the day, followed by the consumer price index (CPI) on Wednesday. The CPI data is expected to show that headline and core prices rose 0.2 per cent month on month.
Traders expect about a 50 per cent chance of a 50 basis point interest rate cut in September by the Fed, according to the CME FedWatch Tool. A low interest rate environment tends to boost non-yielding bullion’s appeal.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.34 per cent to 849.79 tonnes on Monday from 846.91 tonnes on Friday.
The US government recorded a US$244 billion budget deficit for July, up 10 per cent from a year earlier, but accounting for calendar differences, the gap would have been US$45 billion narrower, the Treasury Department said.
On the geopolitical front, Israeli Prime Minister Benjamin Netanyahu traded barbs with his defence minister, underscoring the deep internal splits that continue to plague the government as the war in Gaza risks spilling out into a wider regional conflict.
Spot silver 0.5 per cent to US$27.8607 per ounce, platinum edged 0.2 per cent higher to US$938.55 and palladium shed 0.4 per cent to US$917.10. REUTERS
