Gold Rangebound with Spotlight On U.S. Inflation Reading

by Reuters

Gold traded in a narrow price range on Wednesday as investors looked forward to a key U.S. inflation reading that could shed more light on the Federal Reserve’s interest rates trajectory.

Spot gold rose 0.2% to $2,367.79 per ounce by 0229 GMT. U.S. gold futures climbed 0.3% to $2,374.10.

Fed Chair Jerome Powell in his testimony to the Senate said inflation had been improving in recent months and that “more good data would strengthen” the case for looser monetary policy. Powell will next speak before the House later in the day.

“With the recent run of weaker U.S. data, the case has been built around a September rate cut, but with the Fed Chair still wanting to see more good data, further inflation progress will be needed to offer more confidence for policymakers to open the door to rate cuts,” said IG market strategist Yeap Jun Rong.

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