Gold remained at three-week lows on Thursday, ahead of the European Central Bank’s interest rate decision and US economic data that might give hints on the future of monetary policy.
Spot gold was unchanged at $1,906.29 per ounce after falling to its lowest level since August 25 at $1,904.93. US gold futures GCcv1 declined 0.3% to $1,927.60.
According to data released on Wednesday, consumer prices in the United States rose the highest in 14 months in August, but the annual increase in underlying inflation was the lowest in almost two years.
Federal Reserve officials received some evidence of a decrease in inflation and a weakening economy, but not quite enough to exclude the possibility of more rate hikes later this year.
According to the CME’s FedWatch Tool, traders now expect the Fed to keep rates steady next Wednesday, with a 46% likelihood of another rate rise before 2024.
Markets were also anticipating the European Central Bank’s decision at 1215 GMT on whether to hike interest rates to a record high, while US retail sales and producer price index data were due at 1230 GMT.
