Gold dips as dollar firms ahead of inflation data

Gold prices ticked lower in a low-liquidity market on Thursday, after a more than 2% gain in the previous session, pressured by a firm dollar ahead of key US inflation data that could influence the Federal Reserve’s interest rate-cutting trajectory. Spot gold fell 0.2% to $4,968.10 per ounce by 0315 GMT. US gold futures for April delivery were down 0.4% at $4,987.60. “Gold is in a consolidation mood, reflective of thin liquidity conditions during the Asia holiday period rather than a shift in fundamentals,” said Christopher Wong, a strategist at OCBC. Mainland Chinese, Hong Kong, Singapore, Taiwan and South Korea markets were closed for the Lunar New Year holidays. The US dollar held steady at a more than one-week high, making greenback-priced bullion more expensive for other currency holders. Meanwhile, January’s Fed minutes showed that policymakers were in near-unanimous agreement to keep interest rates on hold at their meeting, but remained split over their next steps, with “several” open to rate hikes if inflation remains elevated, others inclined to support further cuts if inflation recedes.