Gold down amid doubts on Fed tapering timeline
Gold dropped on Wednesday in Asia but hovered above the $1,800-dollar mark. Investors were mulling over a weaker-than-expected rise in U.S. inflation that further fanned the uncertainty over the U.S. Federal Reserve’s timetable for asset tapering.
Gold futures went down 0.14% to $1,804.65 by 12:24 AM ET (4:24 AM GMT) following a one-week peak of $1,808.50 during the last session. The dollar, typically moving inversely to gold, edged up on Wednesday.
The core consumer price index (CPI) made a 4% growth year-on-year and 0.1% month-on-month in August, according to U.S. data released on Tuesday.
The weaker-than-expected data cast doubts on the Central Bank’s timeline for asset tapering, and investors are now looking to the U.S. Fed’s policy decision, due in the coming week.
In other precious metals, silver shed 0.1%, and platinum took a 0.4% loss following a nine-month low of $930.85. Palladium held steady at $1,979.16.