MCX Gold Prices Flat Amid Caution Ahead of US Inflation Data
Gold and silver prices on the MCX were lackluster in morning trade on Thursday, September 10, as investors held back ahead of US inflation data and the Federal Reserve's policy decision.
The US producer price index data was due out on Thursday, with consumer inflation prints scheduled for release on Friday. Most experts believe the Fed will maintain a status quo on interest rates in its next policy meeting on September 15-16.
International gold prices rose, however, due to the dollar's weakness. US gold futures for the December series climbed by more than 0.50% to $4,464.20 per troy ounce as the dollar index eased 0.10%, making greenback-backed bullion slightly cheaper in overseas currencies.
According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, 'Gold held steady in international markets as investors cautiously awaited key US inflation readings for further insight into the Fed’s next policy move.' The yellow metal found support from a weaker dollar and continued demand for its long-term hedging appeal despite near-term pressure from higher oil prices and bond yields.