WASHINGTON (dpa-AFX) - Gold held near record highs on Wednesday as the dollar and Treasury yields dipped on expectations the Federal Reserve will ease its monetary policy in September.
Spot gold edged up 0.3 percent to $2,473.10 per ounce while U.S. gold futures were up 0.2 percent at $2,511.95.
The dollar index held steady near a four-month low and Treasuries were little changed ahead of the U.S. CPI report due later in the day that could allow the Federal Reserve to begin cutting interest rates in September.
Economists currently expect consumer prices to rise by 0.2 percent in July after edging down by 0.1 percent in June.
The annual rate of consumer price growth is expected to dip to 2.9 percent from 3.0 percent.
The annual rate of core price growth is expected to slow to 3.2 percent from 3.3 percent.
Fed Bank of Atlanta President Raphael Bostic on Tuesday said he's looking for 'a little more data' before supporting a reduction in rates.
He also emphasized the importance of certainty in the Fed's decision-making process and maintained his earlier position that rate cuts might be appropriate 'by the end of the year.'
CME Group's FedWatch Tool currently indicates a 54.5 percent chance the Fed will cut rates by 50 basis points at its monetary policy meeting next month and a 45.5 percent chance of a 25-basis point rate cut.
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