BASICS
* Spot gold was trading at $2,511.52 an ounce at 0031 GMT. U.S. gold futures were down 0.1 percent at $2,539.20.
* Data on Wednesday showed U.S. consumer prices rose 0.2% last month, matching July’s gain.
* US central bankers are likely to start taking long-awaited measures interest rate will cut next week by a quarter-percentage point reduction as they seek to reduce the chances of a recession even as underlying price pressures, which remain stubbornly intact, discourage them from taking more aggressive action. * Lower rates reduce the opportunity cost to maintain a zero-yield bullion.
* Traders’ attention will now turn to the U.S. producer price index and initial jobless claims data, due at 1230 GMT.
* The headline PPI is expected to be 0.1% month-on-month, while the year-on-year is expected to be 1.8%. This compares with last month’s figures of 0.1% and 2.2%, respectively.
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.20% to 866.18 tonnes on Wednesday.
* Spot gold could revisit its Sept. 6 high of $2,529 an ounce after briefly breaking through the last barrier of $2,521 toward that peak, according to a Reuters technical analyst. Wang Tao.
* On the geopolitical front, the UN agency for Palestinian refugees, UNRWA, said six of its staff were killed after two airstrikes hit a school in central Palestine. Loop on Wednesday, which it said was the highest number of deaths among its staff in a single incident.
* Spot silver was steady at $28.67 an ounce, platinum gained 0.5% to $955.72 and palladium rose 1.7% to $1,025.37.
DATA/EVENTS (GMT) 1215 EU-ECB refinancing rate for September 1215 EU-ECB deposit rate for September 1230 US initial unemployment rate September 7, weekend 1230 US PPI Machinery manufacturing in August
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