PRECIOUS-Gold climbs as U.S. inflation miss clouds Fed taper bets

Reuters

Warning: This material has been prepared by a third party company, Reuters, which is independent of Davy. Davy has not reviewed the material and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. It does not constitute investment advice.

    * U.S. CPI cools in August
    * Palladium slides to over one-year low
    * Federal Reserve's Open Market Committee meets Sept. 21-22

 (Updates prices)
    By Bharat Gautam
    Sept 14 (Reuters) - Gold hit a one-week high on Tuesday, as
the dollar retreated after a slower-than-expected rise in U.S.
inflation led to uncertainty over the U.S. Federal Reserve's
timeline to taper monetary stimulus. 
    Spot gold  XAU=  rose 0.6% to $1,803.69 per ounce by 1835
GMT, and U.S. gold futures  GCv1  settled up 0.7% at $1,807.10
per ounce.
    "Gold is toying with $1,800/oz following the marginally
weaker-than-expected U.S. inflation data," said Suki Cooper,
precious metals analyst at Standard Chartered Bank, adding "the
macro backdrop remains conducive for further price gains." 
    The U.S. core Consumer Price Index edged up 0.1% in August,
missing expectations of 0.3%, and weighing on the U.S. dollar.
That was the smallest gain since February and followed a 0.3%
rise in July.  urn:newsml:reuters.com:*:nL1N2QF1UC USD/ 
    "While a tapering announcement is unlikely until the
November FOMC meeting, the September meeting will introduce the
staff forecasts, or 'dots' for 2024. The 2024 dots could mirror
2023's two rate hikes," Cooper added.   urn:newsml:reuters.com:*:nL1N2QC1FZ
    The inflation data could reinforce the view that the Fed may
go slow on unwinding economic support measures and keep interest
rates low. Lower interest rates decrease the opportunity cost of
holding non-yielding bullion.
    This (U.S. data) miss is "good news for bullion", as it
makes a September taper announcement from the Fed less likely,
said Ed Moya, senior market analyst at brokerage OANDA.  
    Among other metals, palladium  XPD=  dipped 5.4% to
$1,973.47 per ounce, its lowest since July 2020, and platinum
 XPT=  fell 2.1%, to $941.06 per ounce. 
    Palladium has dropped nearly 20% so far in September. 
    "Supply chain weakness effecting particularly chips and car
manufacturing is having a depressing effect on the platinum
group metals," independent analyst Ross Norman said, adding that
while the supply disruptions persist, prices were likely to be
pressured.  
    Silver  XAG=  rose 0.5% to $23.84 per ounce. 

 (Reporting by Bharat Govind Gautam and Nakul Iyer in Bengaluru;
Editing by Vinay Dwivedi, Shinjini Ganguli and Shailesh Kuber)
 ((BharatGovind.Gautam@thomsonreuters.com; +91-80-6182-3021/
3590 (If within U.S. call 651-848-5832 );))

Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.