Gold directionless ahead of US inflation data
Gold prices consolidated in a tight range and hovered close to a near seven-month high on Thursday, as investors awaited key inflation print to gauge whether interest rate cuts in the U.S. would come sooner than previously expected.
FUNDAMENTALS
* Spot gold was flat at $2,043.69 per ounce by 0225 GMT, after hitting its highest since May 5 on Wednesday, and was poised for its second straight monthly gain.
* U.S.
gold futures for December delivery fell 0.2% to $2,044.20 per ounce.
* The dollar index drifted near three-month lows, and was set to log its worst monthly performance in a year in November.
* A weaker dollar makes gold less expensive for other currency holders.
* Yields on 10-year Treasury notes hit a two-and-a-half-month low of 4.2210%.
* Federal Reserve officials this week flagged the possibility of a rate cut in the months ahead and cooling inflationary pressures.
* Traders have now advanced their bets for a rate cut by the U.S. central bank from an 80% chance in May to a one-in-two chance in March, CME's FedWatch Tool shows.
* Lower interest rates reduce the opportunity cost of holding non-interest-bearing bullion.
* Investor focus will be on U.S.
