BASICS
* Spot gold was trading flat at $2,504.98 an ounce at 0027 GMT. U.S. gold futures were up 0.1 percent at $2,533.70.
* Traders’ attention on Wednesday will focus on the United States. Consumer Price Index (CPI), which are expected to show core inflation continuing its meandering path toward the central bank’s 2% target, and Thursday’s Producer Price Index (PPI) reading. * According to a report by the New York Federal Reserve According to data released on Monday, the U.S. public’s inflation expectations held steady last month even as current price pressures continued to ease. * Traders in Federal Reserve fund futures are now pricing in a 70% chance of a 25 basis point cut at the Fed’s Sept. 17-18 meeting, and a 30% chance of a 50 basis point reduction, according to CME’s FedWatch tool.
* Lower interest rates reduce the opportunity cost of holding a zero-yield bullion. * A report last week showed U.S. employment rose less than expected in August, but a drop in the unemployment rate to 4.2% suggested the labor market was not falling off a cliff enough to warrant a half-point cut. * Data on Monday showed U.S. wholesale inventories rose less than initially thought in July amid a strong rebound in sales, raising questions about whether inventory investment would help economic growth in the third quarter.
* Spot silver fell 0.2% to $28.29 an ounce, platinum gained 0.4% to $941.25 and palladium edged up 0.1% to $945.75. * In company news, Anglo American has hired financial advisers to sell two nickel mines in Brazil, the miner’s country manager Ana Sanches told reporters on Monday.
DATA/EVENTS (GMT)
0600 Germany IPCA year-end August
0600 UK Claimant Count Unemployment Change August
0600 United Kingdom ILO Unemployment July rate
0600 UK HMRC payroll changes in August
China’s exports in August
China imports YY August
China Trade Balance (USD) August.
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