Gold awaits US inflation data

Gold bounced after eight straight days of gains as investors watched Tuesday’s consumer price index statement for clues about when the U.S. Federal Reserve might start cutting interest rates. Bullion traded in a narrow range on Monday after advancing nearly 5 percent last week to reach a four-day high in nominal terms. Friday’s gains were supported by U.S. data showing the unemployment rate at a two-year high, which helped lower the dollar and 10-year Treasury yields. Gold has been on the rise in March, a move that surprised some investors given there has been no major change in the outlook for when the Fed will start cutting rates. In a speech to Congress last week, Chairman Jerome Powell stressed that the central bank needed “a little more evidence” that inflation was moving toward its 2 percent target before it would lower borrowing costs. Policymakers have made similar remarks. Spot gold was up 0.1 percent at $2,182.05 an ounce by 11:16 a.m. New York time, after hitting a week-high of $2,195.15. Silver, platinum and palladium all rose.