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Gold rises from two-month low ahead of US inflation information

Gold prices edged higher on Wednesday on some bargain purchasing after the metal dropped to its most affordable in almost 2 months in the previous session and as the dollar paused ahead of upcoming U.S. inflation data and remarks from Federal Reserve authorities.

Spot gold rose 0.4% to $2,607.59 per ounce by 1015 GMT, after hitting its most affordable given that Sept. 20 on Tuesday. U.S. gold futures increased 0.3% to $2,613.30.

The U.S. dollar index was down 0.1% after having climbed to its highest in more than 6 months versus significant currencies.

Gold saw a significant decrease after the elections and it's. now looking attractive again for medium-term gold bulls ... they. ( Fed) are still on the path to cut rates, but keep in mind likewise that. they have actually already slowed from 50 bps to 25 bps, said. Quantitative Commodity Research analyst Peter Fertig.

The Fed cut interest rates by a quarter of a percentage. point last week. Traders now see a 66% chance of a 25 basis. points cut in the central bank's December meeting, versus 77% a. week back, according to the CME's FedWatch Tool.

Last week, bullion logged its steepest weekly decline in. over five months, as markets soaked up the ramifications of Donald. Trump's victory and its prospective effect on U.S. interest rate. expectations. Lower rates boost the appeal of holding gold,. which yields no interest.

The marketplace focus has now shifted to the U.S. Consumer Price. Index (CPI) data due at 1330 GMT. PPI, jobless claims, and. retail sales are likewise due today together with remarks from Fed. Chair Jerome Powell and other U.S. central bank officials.

It would not be unexpected if the inflation data is not. being available in as they expect and the joblessness rate staying at. a low level might suggest that they (Fed) also make a pause in. December, Fertig stated.

Area silver increased 0.6% at $30.90, platinum. fell 0.1% to $946.60 and palladium gained 0.3% to. $ 947.61.

(source: Reuters)