Gold ticked slightly higher in Asia on Wednesday as investors awaited a widely expected rate hike by the Federal Reserve.
On the Comex division of the New York Mercantile Exchange, gold for February delivery rose 0.11% to $1,061.20 a troy ounce.
Silver futures for March delivery gained 0.18% to $13.780 a troy ounce, while copper for March delivery eased 0.08% to $2.050 a pound.
Overnight, gold was flat on Tuesday in spite of a broadly stronger dollar, as relatively positive Consumer Price Inflation data paved the way for the Federal Reserve to likely approve an interest rate hike when it releases its December monetary policy statement on Wednesday.
Gold likely gained support at $1,046.20, the low from December 3 and was met with resistance at $1,121.90, the high from Nov. 4.
On Tuesday morning, the U.S. Department of Labor reported that its CPI Index remained unchanged in November from the previous month, in line with analysts’ expectations. On a yearly basis, the CPI index edged up by 0.5% over the last 12 months, considerably above gains of 0.2% in October according to forex calendar. The Core CPI Index, which strips out volatile food and energy prices, gained 0.2% on the month, also in line with analysts’ forecasts. Over the last year, Core CPI has increased by 2.0%, slightly above October’s gains of 1.9%. Long-term inflation has remained below the Fed’s targeted goal of 2% for every month over the last three years. The Fed’s preferred gauge, the Core PCE index, has hovered around 1.25% over the last several months.