Gold held an advance as weaker-than-expected U.S. inflation data bolstered the case for the Federal Reserve to cut interest rates.
The core consumer price index, which removes energy and food costs, rose 2% in May, according to a Labor Department report Wednesday, while monthly core price-rises, as well as a wider measure of annual inflation, also came in below estimates. The market-implied odds of a July cut increased, with Fed funds futures indicating almost a quarter-point of easing in the next two months.
Investors were also watching latest developments on the trade front with President Donald Trump saying he had no deadline for China to return to negotiations, other than the one in his head.
Spot gold steady at $1,332.52/oz at 9:29am in Singapore after +0.5% Wednesday.
Source : Bloomberg