FUNDAMENTALS
* Spot gold was down 0.1% at $1,791.60 per ounce, as of 0127 GMT. U.S. gold futures were down 0.2% at $1,808.20.
* Analysts polled by Reuters expect U.S. annual inflation to have eased to 8.7% in July from 9.1% in June. Core inflation is expected at 0.5% month-on-month . The data is due at 1230 GMT.
* The Fed hiked rates by 75 basis points each in June and July to rein in soaring inflation. Although gold is seen as a hedge against inflation, higher U.S. interest rates dull non-yielding bullion’s appeal.
* Fed funds futures traders are now pricing for a 69.5% chance of another 75-basis-point rate increase at the U.S. central bank’s next policy meeting in September.
* The dollar index held firm against its rivals, making gold less appealing for other currency holders.
* Benchmark U.S. 10-year Treasury yields edged higher to 2.7883%, increasing the opportunity cost of holding non-interest bearing gold.
* Japanese wholesale prices rose 8.6% in July from a year earlier, data showed, slowing from the previous month’s pace in a sign inflationary pressure from higher fuel and raw material costs was easing.
* Spot silver eased 0.1% to $20.48 per ounce, platinum was steady at $933.59, and palladium was unchanged at $2,215.29.
DATA/EVENTS (GMT, July)
0130 China PPI, CPI YY
0600 Germany HICP Final YY
1230 US CPI MM, SA
1230 US CPI Wage Earner
