2024.01.1018:02:00UTC+00Gold Futures Settle Lower Ahead Of Inflation Data

Gold futures failed to hold early gains and settled lower on Wednesday as traders lightened commitments ahead of key US inflation data.

Gold prices climbed higher earlier in the day amidst rising geopolitical risks stemming from the Israel-Hamas war.

Middle East worries persisted as Israel intensified bombing and ground incursions in central and southern Gaza with dozens killed in overnight attacks.

The dollar's weakness helped limit the bullion's losses.

The dollar index dropped to 102.37, losing about 0.19%, after having edged up marginally in the Asian session.

Gold futures for February ended down $5.20 at $2,027.80 an ounce.

Silver futures for March ended lower by $0.025 at $23.066 an ounce, while Copper futures for March settled at $3.7810 per pound, gaining $0.0225.

The Labor Department's reports on consumer and producer price inflation, due out on Thursday and Friday, respectively, could have a significant impact on the outlook for interest rates.

Economists expect the reports to show slowdowns in the annual rate of core price growth. However, if the data surprises to the episode, it could add to recent skepticism about whether the Fed will begin cutting rates in March.