Gold inches down as dollar firms, focus on US inflation data

Gold prices edged lower on Thursday, weighed down by a firmer dollar as investors looked forward to key U.S. inflation data due later this week for more cues on the interest rate path. Spot gold was down 0.2% at $4,084.29 per ounce, as of 0310 GMT. U.S. gold futures for December delivery climbed 0.9% to $4,100.90 per ounce. The dollar index rose 0.2% against its rivals, making gold more expensive for other currency holders. “We’ve seen a correction that is normal after the recent rally in gold and there’s still some downside pressure. We expect prices to consolidate thereafter and continue its uptrend,” GoldSilver Central MD Brian Lan said. “At this moment, in the longer term we are still bullish on gold, but in the short term investors have got to be cautious because the volatility is big.” The U.S. Consumer Price Index (CPI) report, due on Friday after a delay due to the government shutdown, is expected to show that core inflation held at 3.1% in September.