Gold ticks up ahead of U.S. CPI, Fed meeting

Shafaq News / Gold priced edged higher on Tuesday as the dollar softened, although prices moved in a tight range as traders awaited U.S. inflation data later in the day and the Federal Reserve’s highly-anticipated policy decision on Wednesday.

Spot gold rose 0.2% to $1,960.59 per ounce by 0426 GMT. U.S. gold futures advanced 0.3% to $1,974.60.

The U.S. dollar eased 0.2%, making greenback-priced bullion more appealing to overseas buyers.

“The market is waiting for the U.S. Consumer Price Index (CPI) and Federal Reserve Monetary Policy Committee (FOMC) meeting to provide a clearer direction on gold price. (However) there is a lack of catalyst for gold to outperform other asset classes regardless of U.S. Fed policy decision making,” said Michael Langford, director at corporate advisory firm AirGuide.

The CPI for May is expected to show a slowing rise in inflation on a year-over-year basis to 4.1% from the April reading of 4.9%, according to economists polled by Reuters, with a monthly increase of 0.2%, down from a 0.4% rise the prior month.

(Reuters)