Gold rises as dollar eases; US inflation data on radar

FUNDAMENTALS

Spot gold was up 0.3% at $4,418.79 per ounce, as of 0048 GMT. U.S. gold futures ‌for December ⁠delivery ⁠were down 0.3% at $4,464.80.
The U.S. dollar index slipped 0.3%, making greenback-priced metals more affordable for other currency holders.

The U.S. producer price index ​data is due on Thursday, and the consumer price index data is scheduled for Friday.

Gold prices fell ​on Sept. 4 after data showed ⁠U.S. job growth ‌accelerated sharply in August, while the ​unemployment rate held ​steady at 4.1%.

Live Events

According to the CME ⁠FedWatch Tool, traders currently see a 60% chance ​of a rate hike at the Fed’s ​policy meeting next week.
Despite being known as an inflation hedge, elevated rates tend to reduce the appeal of non-yielding gold.Deutsche Bank now expects the European Central Bank to raise interest rates by 25 basis points ‌in December in addition to a September hike, as persistent energy risks keep pressure on the ​inflation outlook.

On the geopolitical ⁠front, Iran threatened to retaliate against any new U.S. attacks on its assets, warning that energy infrastructure across the Gulf, including ​U.S. oil and gas interests, was vulnerable.

Among other metals, spot silver gained 0.3% at $66.34 per ounce, platinum rose 0.6% at $1,836.97 and palladium climbed 0.9% to $1,401.47.

DATA/EVENTS (GMT)

N/A China Exports, Imports YY Aug

N/A China Trade Balance USD Aug