Gold prices steady as US inflation data takes centre stage
Aug 14 (Reuters) -Gold held steady on Wednesday as soft U.S. producer prices reinforced hopes of an imminent interest rate cut, while trader focus shifted to U.S. inflation print due later in the day for clues on the Federal Reserve's next policy move.
FUNDAMENTALS
* Spot gold XAU= held its ground at $2,465.27 per ounce, as of 0158 GMT. U.S. gold futures GCcv1 edged 0.1% lower to $2,504.50.
* U.S. producer prices increased less than expected in July, data on Tuesday showed, reinforcing market view that cooling inflation will allow the Fed to cut interest rates soon.
* U.S. consumer price index data for July is due on Wednesday and expected to show month-on-month inflation edged up to 0.2%. Retail sales data is scheduled for Thursday.
* Traders expect about 54% chance of a 50-basis-point interest rate cut in September by the U.S. central bank, according to the CME FedWatch Tool, with an additional cut anticipated in December.
* A low interest rate environment tends to boost non-yielding bullion's appeal.
* Atlanta Federal Reserve President Raphael Bostic said on Tuesday recent data has made him "more confident" in reaching the 2% inflation target, but he wants to see "a little more data" before he's ready to support lowering interest rates.
* Elsewhere, all Brazilian gold imports by Germany and 71% by Italy come from areas of the Amazon where illegal mining is rampant, a think thank said, calling for increased European scrutiny.
* Spot silver XAG= fell 0.15% to $27.80 per ounce, platinum XPT= edged 0.2% higher to $938.25.
* Palladium XPD= rose 0.18% to $940.25 after hitting its highest level since July 24 in the previous session.
DATA/EVENTS (GMT)
0600 UK Core CPI YY July
0600 UK CPI YY July
0600 UK CPI Services MM July
0645 France CPI (EU Norm) Final MM July
0645 France CPI (EU Norm) Final YY July
0645 France CPI YY NSA July
0645 France CPI MM NSA July
0900 EU GDP Flash Estimate QQ Q2
0900 EU GDP Flash Estimate YY Q2
1230 US Core CPI MM, SA July
1230 US Core CPI YY, NSA July
1230 US CPI MM, SA July
1230 US CPI YY, NSA July
1230 US CPI Wage Earner July
Reporting by Daksh Grover in Bengaluru; Editing by Sherry Jacob-Phillips
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