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FX.co ★ Gold Drifts Lower As Dollar Recovers Ahead Of US Inflation Update

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typeContent_19130:::2023-09-12T10:12:00

Gold Drifts Lower As Dollar Recovers Ahead Of US Inflation Update

Gold edged lower on Tuesday and the dollar recovered some lost ground as investors looked ahead to the release of key U.S. inflation and other macroeconomic indicators this week ahead of the Federal Reserve's interest-rate decision due September 20.

Spot gold slipped 0.2 percent to $1,919.30 per ounce, while U.S. gold futures were down 0.3 percent at $1,942.15.

The highly anticipated U.S. consumer price inflation report is due on Wednesday, with a surprise upside in inflation likely to spoil the market mood and boost the appeal for the U.S. dollar.

The Federal Reserve is likely to pause its recent series of rate hikes next week but the outlook for November remains a little more uncertain, with the FedWatch Tool currently indicating a 42.6 percent chance of another quarter point rate hike.

Traders also await cues from the European Central Bank's latest policy decision due on Thursday.

The ECB is expected to hike all three policy rates by 25 basis points, citing a weaker growth outlook and no clear evidence of a peak in core inflation. Few economists, however, predict it will be a close call.

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