Gold trades in tight range ahead of key US inflation data
economictimes.indiatimes.comGold prices were stuck in a tight range on Tuesday as investors refrained from making big bets ahead of a U.S. inflation report that could give fresh perspective on how soon, and by how much, the Federal Reserve could cut interest rates this year.
FUNDAMENTALS
* Spot gold was flat at $2,020.28 per ounce (Oz), as of 0134 GMT, trading in a tight range of $3.
* U.S. gold futures were almost unchanged at $2,033.90/Oz.
* Trading volume is expected to be thin with markets in China and Hong Kong closed for the Lunar New Year holidays.
* Bullion closed 0.2% lower on Monday, after briefly slipping to a more than two-week low of $2,011.72/Oz.
* All eyes were on the January U.S. consumer price index (CPI) data due later in the day. Americans reported a fairly stable outlook for inflation at the start of the year, a New York Fed survey showed.
* Wall Street economists expect the year-on-year CPI to rise 2.9%, down from 3.4% in the previous month, according to a Reuters poll. The core CPI is also expected to have slowed its growth on a year-on-year basis in January to 3.7%, from 3.9% in the previous month.
* Traders see about a 62% chance of a Fed rate cut in May, according to LSEG's Interest Rate Probability app, IRPR.
* Spot platinum was flat at $888.88 per ounce, palladium rose 0.3% to $894.38, and silver was steady at $22.70. DATA/EVENTS (GMT) 0700 UK Unemployment rate Dec 0700 UK Claimant count unemployment Jan 1000 Germany ZEW Economic Sentiment Feb 1330 US Consumer Price Index Jan
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