Gold Prices Flat in Global Market

Gold prices held steady in Wednesday trading on the global market, as investors awaited the release of U.S. inflation data to assess the outlook for Federal Reserve monetary policy.

Gold prices remained unchanged in global market trading on Wednesday as investors awaited the release of US inflation data to assess the outlook for the Federal Reserve's monetary policy.

According to Ambassador Arjan, the price of gold per ounce for immediate delivery remained unchanged and stood at 4165 dollars 25 cents. The precious metal hit a one-week high on Monday.

The price of gold per ounce in the US futures market for December delivery increased by 0.3% to $4,188 and 70 cents.

The price of oil increased in today's transactions.

"What we are seeing now is not a big price movement and prices are fluctuating within a certain range," said Ilya Spivak, Head of Global Macro at TestLive. However, the fact that gold has been able to stay in this range at the same time as oil prices have increased, shows that this precious metal is trying to find a reason to increase the price.

Spivak added: If the upcoming data on the consumer price index, producer price index and retail sales statistics indicate a weakening of the economic activity trend, the markets may adjust their expectations about further interest rate hikes by the Federal Reserve this year, which could be a positive stimulus for gold prices.

The US consumer price index (CPI) report is due today, followed by producer price index (PPI) data and retail sales data on Thursday.

New York Federal Reserve Chairman John Williams reiterated his view that the US central bank may raise interest rates one more time this year to curb inflation.

Meanwhile, Christopher Waller, a member of the Federal Reserve Board, said that the recent increase in US bond yields is due to stronger economic growth, not an increase in inflation expectations, which are still at a fairly stable level.

Traders now see a 22 percent chance of a U.S. interest rate hike this month and an 88 percent chance of a December rate hike, according to CME's Fed Watch tool, Reuters reported.

While gold is commonly seen as a hedge against inflation, in a high interest rate environment, it loses its appeal as a zero-yield asset.

In the market of other valuable metals, the price of silver per ounce for immediate delivery decreased by 0.2% to 59 dollars and 33 cents. The price of platinum per ounce remained unchanged and stood at the level of $1,663 and 16 cents, and palladium was traded at $1,133 and 49 cents, with an increase of 0.7%.