KONTAN.CO.ID - SINGAPORE. Gold prices settled into a holding pattern on Tuesday as investors awaited U.S. inflation figures that could provide an updated view on interest rates after the Federal Reserve kept the door open for further policy tightening. Spot gold was flat at $1,922.30 per ounce by 0306 GMT, while U.S. gold futures eased 0.1% to $1,946.10. Market activity is likely to be broadly subdued until the U.S. Consumer Price Index (CPI) data is out on Wednesday, which could provide guidance on U.S. interest rates after a widely expected pause by the Fed next week.
"A CPI number coming in in-line or even slightly higher would likely place some short-term pressure on gold," said Nicholas Frappell, global head of institutional markets at ABC Refinery. Americans' overall views on inflation were little changed in August, even as they predicted higher prices for essentials such as rent and food, the New York Fed reported on Monday. Read Also: Morocco Earthquake Toll Passes 2,800 as Rescuers Search for Survivors Markets are pricing in a 93% chance of the Fed holding rates steady at their Sept. 19-20 policy meeting, but there's a 41% chance of a hike in November, according to CME's FedWatch tool. Demand for non-interest-bearing gold could take a hit if the Fed further raises U.S. interest rates to quell inflation.
