WASHINGTON (dpa-AFX) - Gold held steady on Tuesday as investors digested mixed Chinese trade data and looked ahead to the release of key U.S. inflation readings this week for additional clues on the size of potential rate cuts by the Federal Reserve at its meeting next week.
Spot gold slipped 0.1 percent to $2,503.81 per ounce while U.S. gold futures were little changed with a positive bias at $2,532.9.
The U.S. CPI data is due on Wednesday and the PPI on Thursday. The readings could offer hints about the size of the Federal Reserve's interest rate reduction next week.
CME Group's FedWatch Tool currently indicates a 73 percent chance the Fed will lower rates by 25 basis points and a 29 percent chance of a 50-basis point rate cut.
Meanwhile, with the U.S. election nearing, Democrat Kamala Harris and Republican Donald Trump will face off in a debate for the first time later today.
Elsewhere, the European Central Bank is expected to lower borrowing costs for a second time this year on Thursday due to falling inflation and sluggish growth.
The British pound edged up versus the euro and dollar as new labor market data supported the view that the British economy was on a solid footing.
Capital Economics' economist Ashley Webb said that further easing in British wage growth is a welcome sign but will not be enough to prompt a back-to-back 25 basis points interest rate cut, from 5.00 percent to 4.75 percent in September.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
