Investors trade gold steadily, anticipating crucial U.S. inflation


(MENAFN) Investors traded Gold within a narrow range during Asian trading on Wednesday, anticipating a crucial U.S. inflation reading that could provide further insights into the Federal Reserve's interest rate strategy. Spot gold experienced a modest rise of 0.2 percent, reaching USD2,367.79 per ounce by 0229 GMT, while U.S. gold futures climbed 0.3 percent to USD2,374.10.

In his testimony before the Senate, Federal Reserve Chairman Jerome Powell noted that inflation has shown improvement in recent months. He mentioned that additional favorable economic data could bolster the case for a more accommodative monetary policy. Powell is scheduled to speak before the House of Representatives later on Wednesday, which could further influence market expectations.

The CME Group's FedWatch service indicated that traders now estimate a 73 percent probability of a rate cut in September. As interest rates decline, the demand for non-yielding gold typically increases, making the precious metal more attractive to investors.

The June consumer price index (CPI) data, expected on Thursday, is projected to show a 0.1 percent rise in headline prices and a 0.2 percent increase in core prices on a monthly basis. This would result in an annual increase of 3.1 percent for headline prices and 3.4 percent for core prices, respectively.

Other precious metals also saw movement, with silver rising by 0.3 percent in spot transactions to USD30.89 per ounce. Platinum remained stable at USD984.55, and palladium saw a slight increase of 0.1 percent to USD981.37.

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