Spot gold was flat at $ 1,808.50 an ounce on Wednesday at 1:20 am GMT, after hitting a one-week high at $ 1,808.50 in the previous session.
US gold futures fell 0.2% to $ 1,803.80.
The consumer price index (CPI) rose only 0.1% last month, compared to an expected increase of 0.3%. This is the smallest gain in six months, suggesting that inflation has likely peaked, although it could remain high for some time amid persistent supply constraints.
The data cast a shadow of uncertainty over the Federal Reserve’s taper schedule. The Fed will hold a two-day monetary policy meeting next week.
CPI data weighed on the dollar index, as the US 10-year benchmark yield hit its lowest level since August 24.
Lower yields reduce the opportunity cost of holding non-interest bearing bullion.
Japanese manufacturers’ confidence deteriorated to a five-month low in September as the fallout from the latest wave of COVID-19 put further pressure on the world’s third-largest economy, the Reuters Tankan poll showed.
Silver fell 0.1% to $ 23.81 an ounce.
hit a nine-month low of $ 930.85 and was last down 0.4% to $ 935.60.
Palladium was stable at $ 1,979.16. Prices hit their lowest level since July 2020 at $ 1,935 in the previous session.