Sumary of Gold flat near $1,800 as U.S. inflation data fuels uncertainty:
- Article content Gold held flat above the key psychological level of $1,800 on Wednesday, after a tamer-than-expected rise in U.S. inflation led to uncertainty on when the U.S. central bank would begin tapering its asset purchases.
- Article content Underlying U.S. consumer prices increased at their slowest pace in six months in August, lending credence to the Fed’s view that high levels of inflation were transitory.
- The data also raised expectations that the Fed may go slow on unwinding economic support measures and keep interest rates near zero for sometime.
- The U.S. central bank is due to hold its two-day monetary policy meeting next week.
- 24. “I see gold holding above $1,800, as critical risks relating to COVID-19 and underlying economic activity incentivise central banks to keep the taps flowing, the key short-term driver of gold prices,” said Michael Langford, director at corporate advisory AirGuide.