Gold Edges Higher Ahead of Key US Inflation Data Release

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(Bloomberg) — Gold edged higher for a third day as traders look ahead to the release of key US inflation figures later on Thursday.

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The core consumer price index, which excludes food and energy, is expected to show a small increase of 0.2% in June. That might bolster the case for monetary easing.

On Wednesday, Federal Reserve Chair Jerome Powell wrapped up a second day of testimony in Washington, where he said the central bank doesn’t need inflation below 2% before cutting interest rates. Swaps traders now see two reductions in 2024, bolstering bullion which doesn’t pay interest.

Central-bank buying remains a support for the precious metal.

The Bank of Uganda said it plans to initiate a domestic gold-purchasing program to build its foreign reserves and minimize risks on reserve investments, according to its latest quarterly State of the Economy Report.

Spot gold was up 0.5% to $2,383.52 an ounce as of 10:09 a.m. in London, while the Bloomberg Dollar Spot Index fell 0.1%. Silver edged up toward $31 an ounce, while platinum and palladium both fell.

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