Gold prices changed little by continuing to hover around three -week lows as investors await U.S. inflation data that may influence the Federal Reserve’s (Fed) decision to cut stimulus.
In the Asian session, the precious metal traded at $ 1,790 an ounce, while gold futures rose slightly at $ 1,791 an ounce.
The US consumer price index (CPI) is expected to continue to show an increase in August although the readings recorded may be slower than those recorded the previous month.
These inflation readings will be scrutinized and used as an indication of the stimulus reduction timeline by the Federal Reserve (Fed) which will hold a policy meeting next week.
Gold will usually rise if inflation rises because it is considered a hedge to inflation.
But with rising inflation, it also raises market expectations for the Fed to immediately make a reduction in its bond purchases.
For now, investors are taking cautious steps to place positions, causing market movements to be seen as limited.
Meanwhile, the US dollar's trade, which remained stable after rising to a two -week high, also made gold prices more valuable for holders of other major currencies.
