Market participants across the globe awaited U.S. consumer price index (CPI) data due at 13:30 GMT on Tuesday and producer price index data due on Wednesday. Wall Street economists expect the headline CPI to have slowed to a 0.1% rise in October, from a 0.4% increase in September, according to a Reuters poll. The core inflation number is seen at 0.3%, unchanged from September.
“Any upside surprise in the data could see some sort of modest repricing of the odds of another hike, if not in December, then maybe at the start of next year,” said Kyle Rodda, a financial market analyst at Capital.com. “If that happens to be the case, then it will be reasonably negative for gold… the fact that inflation remains still fairly persistent and rates are going to have to remain relatively elevated in the short term.”