Gold firm ahead of US CPI data on cautious Fed approach
Gold held firm near two-week highs on Thursday, as the U.S. dollar and Treasury yields stumbled on the Federal Reserve's cautious approach on interest rates and ahead of a key inflation report that could offer more clarity on future policy path.
FUNDAMENTALS
* Spot gold was up 0.1% at $1,874.49 per ounce by 0110 GMT, hovering near Wednesday's highest level since Sept. 29.
U.S. gold futures were steady at $1,887.50.
* The dollar index and U.S. Treasury yields were rooted near two-week lows, making non-interest-paying gold more attractive.
* U.S.
producer prices increased more than expected in September, but underlying inflation pressures at the factory gate continued to abate. The mixed report came before the September consumer price index data on Thursday, which is expected to show inflation moderated last month.
* A growing sense of uncertainty around the path of the U.S. economy, with volatile data and tightening financial markets posing risks to growth, pushed Fed policymakers into a newly cautious stance last month, a position reaffirmed by top U.S.
