Gold prices consolidated in a tight range near the key $1,800 level Wednesday as weaker-than-expected U.S. inflation data added to uncertainty over the U.S. Federal Reserve’s timeline to begin asset tapering.
Spot gold dipped 0.2 percent to $1,801.12 per ounce, after having hit a one-week peak of $1,808.50 on Tuesday. U.S. gold futures were down 0.3 percent at $1,802.60.
A highly anticipated report released by the Labor Department on Tuesday showed that the consumer price index rose by 0.3 percent in August after climbing by 0.5 percent in July. Economists had expected consumer prices to increase by 0.4 percent.
Uncertainty persists about Fed policy despite the disappointing inflation figures. On Friday, the government reported that U.S. wholesale prices jumped sharply in August.
The Commerce Department will release retail sales for August on Thursday, giving another glimpse into consumer spending. The University of Michigan will release its consumer sentiment survey on Friday.
The Fed is scheduled to hold a monetary policy meeting next week, with many expecting the central bank to provide an update on the outlook for its asset purchase program.
Data on U.S. import and export prices and industrial production, all for August, and New York Fed’s empire manufacturing survey for September are set for release in the New York session.
The material has been provided by InstaForex Company – www.instaforex.com