* US consumer price inflation data is available at 1230 GMT. is payable on
* Dollar lowers to more than a year high (recaps, adds comments, updates prices)
Oct 13 (Businesshala) – Gold prices held steady on Wednesday, helped by a modest fall in the dollar, while investors await US inflation data to pave the way for the Federal Reserve’s policy to normalize.
Spot gold was little changed at $1,760.26 an ounce as of 0305 GMT, while US gold futures were up 0.1% to $1,760.60.
The dollar index, which measures the greenback against six rivals, was down 0.2% on Tuesday from a one-year high hit.
DailyFX currency strategist Ilya Spivak said, “We are going to get US CPI data from the September FOMC meeting as well as those important minutes, so I think the need to get a directional catalyst for gold after this period of consolidation capability.”
“If the CPI gets warmer, we’re probably looking at expectations that the Fed may need to move faster in raising rates.”
US consumer price inflation data is at 1230 GMT, while minutes from the Fed’s September 21-22 policy meeting will be released at 1800 GMT.
Three Fed policymakers said on Tuesday that the economy has recovered enough for the central bank to withdraw its crisis-era support, cementing expectations that the Fed will begin tapering off as soon as next month.
As inflationary pressures mount around the world, money markets are aggressively raising interest rates with pricing, in most cases betting that policy will be tightened sooner than rate-setters. signals at a very high speed.
Lower central bank incentives and higher interest rates boost government bond yields, which translates into a higher opportunity cost for holding no-interest gold.
Among other precious metals, spot silver rose 0.2% to $22.57 an ounce, while platinum and palladium were down 0.2% at $1,005.00 and $2,041.24, respectively. (Reporting by Eileen Soreng in Bengaluru; Editing by Krishna Chandra Eluri)