Gold firms as dollar, yields slip after US PPI data
U.S. CPI data due on Wednesday
U.S. 10-year bond yields hit one-week low
Gold looks poised to set new record high - analyst
Updates prices as of 1754 GMT
By Rahul Paswan
Aug 13 (Reuters) -Gold prices steadied on Tuesday to hover close to an all-time high hit in July, as the dollar and Treasury yields crept lower after U.S. producer price data cemented hopes for a interest rate cut from the Federal Reserve in September.
Spot gold XAU= was down 0.2% to $2,467.80 per ounce by 1:54 p.m ET (1754 GMT)due to some profit-taking. Non-yielding gold touched a record high of $2,483.60 on July 17 and is up 20% so far this year.
U.S. gold futures GCcv1 for December delivery settled 0.2% higher at $2,507.80.
The dollar USD= was down 0.4%against its rivals, making gold more attractive for other currency holders, while the Benchmark 10-year note yields US10YT=RR slipped to a one-week low. US/ USD/
U.S. producer prices increased less than expected in July, indicating that inflation continued to moderate, data showed on Tuesday.
Traders now look forward to U.S. July consumer price index (CPI) data due on Wednesday and the retail sales data on Thursday for further direction on U.S. central bank's next policy move.
"Despite recent profit-taking, ongoing geopolitical tensions and recent volatility in the market along with the anticipated rate cut continue to drive investors toward safe-haven," said Alex Ebkarian, chief operating officer at Allegiance Gold.
"The US inflation data due tomorrow may raise expectations again, which could give the gold price a further tailwind. A new record high is therefore only a matter of time," Commerzbank said in a note.
Traders are pricing in about 54% chance of a 50-basis-point Fed rate cut in September, according to the CME Group's FedWatch tool. Bullion's appeal tends to shine in a low interest rate environment.
Fears that the conflict in Gaza could turn into a broader Middle East war have escalated after the killing of Hamas leader Ismail Haniyeh in Iran last month.
Spot silver XAG= fell 1.2% to $27.68 per ounce, platinum XPT= rose 0.4% to $939.80 and palladium XPD= rose 1.8% at $936.29.
Spot gold price in USD per oz https://reut.rs/3M4cXq3
Reporting by Rahul Paswan in Bengaluru; Editing by Shailesh Kuber and Mohammed Safi Shamsi
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