Gold unchanged ahead of US inflation data

Gold prices showed little change during the early hours of Asian market trading on Thursday, as participants awaited key inflation data that could influence the path of the US Federal Reserve (the US central bank) on interest rates.

Gold stabilized in spot trading at around $4,396.69 per ounce by 00:15 GMT. US December gold futures fell 0.4 percent to $4,440.80.

The US Producer Price Index data is scheduled for release at 12:30 GMT, while consumer price inflation data is due on Friday.

Most experts in a Reuters poll expected the US central bank to keep interest rates unchanged at its meeting on September 15-16, as well as for the remainder of this year.

CME’s FedWatch tool shows markets are pricing in a 60 percent probability of a US interest rate hike this month.

The European Central Bank appears set to raise interest rates on Thursday for the second time this year, aiming to tackle a wave of inflation driven by rising energy prices resulting from the Iran war.

In other precious metals, silver stabilized in spot trading at $67.30 per ounce, platinum rose 0.1 percent to $1,897.57, and palladium increased 0.2 percent to $1,355.44.