Gold flat ahead of inflation with more big rate hikes looming

Gold was flat before US inflation data due Tuesday, and as central bankers in the US and Europe signalled more rate rises were on the way.

Bullion has mainly fluctuated between $1 700 an ounce and $1,720 in September after several months of declines, and closed Friday with its first weekly gain in four. The dollar was down on the day.

Economists forecast the August inflation figure would slow for the second month in a row to 8.1%. Still, US central bank officials last week seemed to point to another super-sized rate rise of 75 basis points in September. Fed Governor Christopher Waller said Friday he favoured “another significant” increase.

The European Central Bank lifted rates by 75 basis points last week, and is prepared to do the same when the committee meets in October, said people familiar with the debate.

Spot gold was trading at $1,716.07 an ounce at 10:13 a.m. Singapore time, little changed from its close on Friday. The Bloomberg Dollar Spot Index declined. Silver and palladium were up, while platinum fell.

© 2022 Bloomberg

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