Gold slips as oil rally keeps inflation, rate outlook on investors' radar
GLD•Fed outlook and inflation data remain in focus
Top Federal Reserve officials welcomed cool inflation figures for June, but said they would need more such readings to feel confident that price pressures are truly easing.
The Producer Price Index, due later in the day, is expected to offer further insight on inflation.
Traders now see about a 58% chance of a rate increase at the Fed's September meeting, versus 76% before the report, and are still pricing an about 80% chance of a December hike, CME FedWatch Tool's data showed. FEDWATCH/
Elsewhere, spot silver XAG= lost 0.5% to $58.35 per ounce. Platinum XPT= eased 0.1% to $1,629.89 and palladium XPD= fell 0.2% to $1,302.10.
Gold eases as oil-driven inflation concerns weigh on bullion
July 15 (Reuters) - Gold prices fell on Wednesday after climbing more than 2% in the previous session, as rising oil prices fuelled inflation concerns and uncertainty over the U.S. interest-rate outlook, weighing on non-yielding bullion.
Spot gold XAU= was down 0.6% at $4,028.43 per ounce, as of 0443 GMT. U.S. gold futures GCcv1 for August delivery eased 0.8% to $4,035.50.
Gold jumped more than 2% to as much as $4,100.49 per ounce on Tuesday, rebounding from a two-week low, after data showed U.S. consumer inflation slowed more than expected in June as energy prices retreated.
Oil prices extended gains to a third consecutive session as U.S. President Donald Trump reimposed a naval blockade of all Iranian ports and threatened to hit power plants and bridges next week unless Tehran resumes negotiations, in the latest U.S. escalation of the conflict. O/R
"I reckon that the market is now looking past the CPI data, which is kind of a lagging indication... Trump continues to maintain the blockade of ships that is flowing out of the Strait of Hormuz, causing oil prices to rise and gold to come under pressure," said Kelvin Wong, a senior market analyst at OANDA.
