PRECIOUS-Gold steady above $1,800 as U.S. inflation raises doubts on Fed taper timeline

Reuters

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    Sept 15 (Reuters) - Gold prices held above the key
psychological level of $1,800 as the dollar and bond yields came
under pressure after a tamer-than-expected rise in U.S.
inflation led to uncertainty on when the U.S. central bank will
begin tapering its asset purchases.
    
    
    FUNDAMENTALS
    * Spot gold  XAU=  was steady at $1,802.86 per ounce, as of
0120 GMT on Wednesday, having hit a one-week peak of $1,808.50
in the previous session. 
    * U.S. gold futures  GCv1  eased 0.2% to $1,803.80.
    * Consumer Price Index (CPI) was up just 0.1% last month,
compared with an expected increase of 0.3%. That was the
smallest gain in six months suggesting that inflation had
probably peaked, though it could remain high for a while amid
persistent supply constraints.  urn:newsml:reuters.com:*:nL1N2QG130
    * The data has thrown a shade of uncertainty over the
Federal Reserve's taper timeline. The Fed will hold a two-day
monetary policy meeting next week. 
    * The CPI data weighed on the dollar index  =USD , while the
benchmark U.S. 10-year yield  US10YT=RR  hit its lowest reading
since Aug. 24.  USD/   US/ 
    * Lower yields reduce the opportunity cost of holding the
non-interest bearing bullion.
    * Japanese manufacturers' confidence worsened to a
five-month low in September as the fallout from the latest wave
of COVID-19 put fresh pressure on the world's third-largest
economy, the Reuters Tankan poll showed.
    * Silver  XAG=  fell 0.1% to $23.81 per ounce. 
    * Platinum  XPT=  hit an over nine-month low of $930.85 and
was last down 0.4% to $935.60. 
    * Palladium  XPD=  was flat at $1,979.16. Prices touched
their lowest level since July 2020 at $1,935 in the previous
session. 

DATA/EVENTS (GMT)
0200  China    Urban Investment (YTD) YY
0200  China    Industrial Output YY
0200  China    Retail Sales YY
0600  UK       CPI YY
0645  France   CPI (EU Norm) Final MM, YY
1000  EU       Reserve Assets Total
1315  US       Industrial Production MM

 (Reporting by Eileen Soreng in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((eileen.soreng@thomsonreuters.com; Within U.S. +1 646 223
8780, Outside U.S. +91 80 6749 6131; Reuters Messaging:
eileen.soreng.thomsonreuters.com@reuters.net))

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