Gold prices show slight decline before US consumer price inflation report
Date
1/15/2025 2:10:28 AM
(MENAFN) Gold prices showed a slight decline on Wednesday as caution prevailed ahead of the U.S. consumer price inflation report, which may provide more clarity on the path of U.S. interest rates.
By 0300 GMT, spot gold fell 0.1 percent to USD2,672.76 an ounce, while U.S. gold futures rose 0.3 percent to USD2,689.70.
Kelvin Wong, senior market analyst for Asia Pacific at OANDA, said: "If CPI data comes in high, it could lead to a decline in gold as this somewhat reinforces the view that the Federal Reserve is likely to proceed with last year's monetary easing policy in 2025."
Traders await data set for 1330 GMT after last week's jobs report strengthened the U.S. economy and spurred traders to reduce bets on further interest rate cuts.
Gold also continued to rise on Tuesday, January 14, after data revealed that the producer price index escalated annually in December, raising expectations slightly that the Fed will continue to cut interest rates in 2025.
Also, as President-elect Donald Trump begins his second term next week, the focus remains on his policies, which analysts predict will lead to rising inflation.
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