(Reuters) – Gold prices were little changed on Wednesday, near a one-month high hit in the previous session, while focus shifts to U.S. inflation data due later this week.
FUNDAMENTALS
* Spot gold was 0.1% down at $1,709.80 per ounce, as of 0050 GMT. U.S. gold futures fell 0.1% to $1,714.10.
* Bullion prices breached the key $1,700 level and hit a one-month peak in the previous session, following a fall in the dollar and bond yields as well as some technical buying.
* Investors’ focus remains on the U.S. consumer price index report due on Thursday. The data is likely to offer cues on U.S. Federal Reserve’s rate hike stance.
* Although gold is seen as an inflation hedge, rising rates increase the opportunity cost of holding bullion.
* The European Central Bank will continue to raise borrowing costs even as the euro zone economy suffers because letting inflation stay high would be even more painful, two top ECB policymakers said on Tuesday.
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.3% to 908.38 tonnes on Tuesday from 905.48 tonnes on Monday.
* Spot silver was flat at $21.35. Platinum fell 0.1% to $996.99 and palladium was down 0.5% to$1,912.02.
DATA/EVENTS (GMT)
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(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Rashmi Aich)
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