Gold steady at $4,116 ahead of US inflation data

Gold traded close to $4,116 on Tuesday, with spot bullion rising 1.24% to $4,116.27 an ounce by 12:33 pm PST, Mettis Global reported. Market participants were waiting for US consumer inflation figures due later in the day, looking for clues about the Federal Reserve’s next steps. Producer price data is scheduled for Friday.

CME FedWatch pricing showed an 84% chance of a US rate increase in December. Higher rates can make bullion less attractive because it does not pay interest, while Richmond Fed President Tom Barkin said the central bank should be cautious as it responds to inflation. Silver fell 0.6% to $53.04 an ounce, platinum eased 0.3% to $1,571.70 and palladium declined 0.4% to $1,037.50. Oil also moved lower, extending its previous session’s decline.