PRECIOUS-Gold subdued as hopes for deeper Fed rate cut dim

Reuters08-15

Aug 15 (Reuters) - Gold prices were flat on Thursday after a 1% drop in the last session, as U.S. data showing consumer prices rose as expected last month lowered bets of a bigger rate cut from the Federal Reserve in September.

FUNDAMENTALS

* Spot gold was nearly unchanged at $2,448.49 per ounce, as of 0155 GMT, after bullion prices fell their most since Aug 6 on Wednesday. U.S. gold futures rose 0.26% to $2,486.00.

* Data on Wednesday showed that the U.S. consumer price index rose moderately in July and the annual increase in inflation slowed to below 3% for the first time since early 2021.

* The data opened the door wider for the U.S. central bank to cut rates next month but a larger reduction is unlikely.

* Traders now see an about 36% chance of a 50-basis-point rate cut in September, down from 50% prior to the data release, according to the CME FedWatch Tool.

* A low interest rate environment tends to boost non-yielding bullion's appeal.

* Market focus will be now on U.S. retail sales and initial jobless claims data due at 1230 GMT.

* Elsewhere, Hamas said on Wednesday it would not take part in a new round of Gaza ceasefire talks slated for Thursday in Qatar, but an official briefed on the talks said mediators expected to consult with the Palestinian group afterwards.

* Spot silver fell 0.4% to $27.49 per ounce, platinum

gained 0.4% to $923.35 and palladium shed 0.9% to $927.25

* South Africa's Northam Platinum warned of a sharp fall in profit, saying it expected an uncertain global economic outlook to keep platinum group metal $(PGM.AU)$ prices low for "some time".

DATA/EVENTS (GMT) 0800 China Unemp Rate Urban Area July 0600 UK GDP Est 3M/3M June 0600 UK GDP Estimate MM June 0600 UK GDP Estimate YY June 0600 UK Services MM June 0600 UK Services YY June 0600 UK Manufacturing Output MM June 0600 UK GDP Prelim QQ Q2 0600 UK GDP Prelim YY Q2 1230 US Import Prices YY July 1230 US Initial Jobless Clm 10 Aug, w/e 1230 US Philly Fed Business Indx August 1230 US Retail Sales MM July 1315 US Industrial Production MM July

(Reporting by Daksh Grover in Bengaluru; Editing by Subhranshu Sahu)

((Daksh.Grover@thomsonreuters.com;))

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PRECIOUS-Gold subdued as hopes for deeper Fed rate cut dim

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