13.09.202310:07:00UTC+00Gold Drifts Lower Before US Inflation Report

Gold prices were subdued on Wednesday ahead of the release of key U.S. inflation data later in the day that could influence the outlook for interest rates.

Spot gold slipped 0.1 percent to $1,911.33 per ounce, while U.S. gold futures were down 0.1 percent at $1,933.55.

Economists currently expect the annual rate of consumer price growth to accelerate to 3.6 percent in August from 3.2 percent in July, while the annual rate of core consumer price growth is expected to slow to 4.4 percent from 4.7 percent.

The inflation report could have a significant impact on the outlook for interest rates ahead of the Federal Reserve's monetary policy meeting next week.

Ahead of the data, CME Group's FedWatch Tool currently indicates a 93.0 percent chance the Federal Reserve will leave interest rates unchanged next week.

The outlook for November is a little more uncertain, with the FedWatch Tool indicating a 40.9 percent chance of another quarter point rate hike.

It is feared that upside risks to inflation from rising crude oil prices could elevate the likelihood of a final interest rate hike from the Fed.

Crude prices traded higher near 10-month highs in European trade, drawing support from upbeat outlooks published by OPEC and the EIA.