The price of gold was moving lower Wednesday morning as the US dollar was trading mixed ahead of the inflation data, due out later today.
Gold for February delivery, the most actively traded contract, shed $5.10 to $1,678.80 an ounce. Yesterday, gold settled up near a three-week high, with traders overlooking positive retails data out of the US amid reports that the Bank of Japan may agree for a firm 2 percent inflation target as demanded by the new government over there.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, moved down to 1,336.83 tons from 1,337 73 tons.
Meanwhile, the U.S. dollar was lingering around a 11-month low versus the euro and leveling off from its 2-week low against sterling. The buck continued to retreat from its 30-month high versus the yen and ticking lower against the Swiss franc.
In economic news, euro zone inflation remained unchanged at 2.2 percent in December as initially estimated, final data released by Eurostat showed. The latest figure is the lowest since November 2010. Inflation has been hovering above the central bank’s threshold limit of 2 percent for many months.
The prices of silver and platinum were moving lower in morning deals.
From the U.S., the Labor Department is scheduled to release its consumer price inflation report at 8:30 am ET. Economists expect headline inflation rate of 0 percent for December, while the core consumer price index may have edged up 0.1 percent. In November, consumer prices declined 0.3 percent, while core prices rose 0.2 percent.
by RTT Staff Writer
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