Among other precious metals, spot silver was down 0.4% to $20.42 per ounce and platinum fell 0.5% to $929.34.
“COMEX gold trades marginally lower amid choppiness in US dollar and bond yields ahead of US inflation data. US inflation data is expected to see some easing in price pressure which may give Fed room to slow down the pace of rate hikes but the question is if one reading will be enough for Fed to alter its stance," said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
“An improvement in inflation is already factored in so unless we see a significant improvement. We do not expect the Fed to alter its stance which may keep pressure on gold prices," he added.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said: “We expect precious metals to remain volatile to negative in today’s session and if it continues to sustain below $1800 per troy ounce it could show further weakness towards $1772-7155 per troy ounce; $1810 acts as major resistance for Gold. Gold has support at $1772-1760, while resistance at $1805-1816 per troy ounce. In rupee terms gold has support at ₹52040-51,810, while resistance is at ₹52,420–52,540."
Economists expect US annual inflation to have eased to 8.7% last month from 9.1% in June, according to a Reuters poll.
Analysts say that if inflation numbers come in stronger than expected, bets on aggressive rate hikes by the Fed will go up, which would be negative for gold prices.
Though gold is seen as a hedge against inflation, higher interest rates increase the holding cost of non-yielding bullion. (With Agency Inputs)
