Gold Prices Mixed Ahead Of US Inflation Data

Gold prices were mixed on Tuesday ahead of the U.S. consumer inflation report due later in the day and the Sept. 21 interest rate decision of the Federal Reserve.

Spot gold edged up 0.1 percent to $1,727.08 per ounce, while U.S. gold futures were down 0.2 percent at $1,737.60.

The dollar was on the backfoot ahead of U.S. inflation data due later in the day that could show some signs of softening in August.

The report is expected to show a continued slowdown in the annual rate of consumer price growth to 8.1 percent in August from 8.5 percent in July.

Despite the anticipated softening, the Federal Reserve is expected to raise interest rates by 75 basis points next week to make sure inflation is extinguished.

Reports on producer prices, import and export prices, retail sales, industrial production and consumer sentiment are also likely to attract attention in the coming days.

Meanwhile, German harmonized inflation released earlier in the day was confirmed at 8.8 percent in August, unrevised from the preliminary reading.