U.S. consumer price index CPI report due at 1230 GMT
Gold likely to trade in 1,8001,820 range in coming week analyst
July 13 Reuters Gold prices held steady in a tight range on Tuesday as investors turned their focus to U.S. inflation data, which could shed more light on the Federal Reserves timeline for policy tightening.
Spot gold rose 0.1 to 1,808.24 per ounce by 0619 GMT, while U.S. gold futures were 0.2 higher at 1,809.10. The dollar index was largely flat against rivals.
After the U.S. consumer price index CPI report due at 1230 GMT later in the day, attention will shift to Fed Chairman Jerome Powells testimony before Congress on Wednesday and Thursday for his response to the inflation data.
While gold is viewed as an inflation hedge, interest rate hikes will dull its appeal as they translate into a higher opportunity cost of holding the nonyielding precious metal.
The CPI data is going to frame the perception the market has regarding Powells testimony, said IG Market analyst Kyle Rodda.
I think the Fed is edging closer towards that desire to warm the market up to policy normalisation and if they continue along that path or accelerate along that path, thats going to be a headwind for gold, Rodda said.
Gold prices have stabilised after marking their biggest monthly drop since November 2016 in June, as Powell said the Fed would not raise interest rates too quickly based only on the fear of coming inflation and would aim for a broad and inclusive recovery…