Gold has held steady at positive levels around $3,350 since Tuesday trading on the possibility of a Federal Reserve (Fed) interest rate cut at the September meeting and Fed officials’ speeches scheduled for Wednesday.
At 9.20 am, gold prices were at $3,347.97, unchanged since it opened early Wednesday in Asian trading.
According to a report by the US Bureau of Labor Statistics (BLS), the US Consumer Price Index (CPI) was released in line with market expectations, rising 2.7% in July.
Meanwhile, Core CPI rose to 3.1% compared to an increase of 2.9%, which is above the market consensus of 3%.
In addition, the market is looking at the potential for Fed policy easing after the release of US CPI data, placing the probability as high as 67% at the October meeting.
The expected support for the cut could weigh on the US dollar and support gold prices to continue to rise.
Meanwhile, President Donald Trump on Monday agreed to delay the implementation of sweeping tariffs on China, extending it by another 90 days after the last deal between the world's two largest economies was due to expire.
