Gold prices have turned positive on the day as markets digest a steady increase in U.S. inflation pressures.
Tuesday, the U.S. Labor Department said its U.S. Consumer Price Index rose 0.2% in February, after increasing 0.5% in January. The increase was stronger than expected as consensus forecasts were calling for a 0.2% increase.
For the year, headline inflation increased 2.2%, the report said.
Gold prices were under modest selling pressure ahead of data and have moved into slight positive territory in initial reaction. April gold futures last traded at $1,322.8 an ounce, up 0.15% on the day.
Gold prices have struggled to find momentum as markets prepare for next week’s Federal Reserve monetary policy meeting. The central bank is widely expected to raise interest rates 25 basis points. However, markets are anxious to see how aggressive the bank will be on further rate hikes through the year.