Gold prices were flat on Wednesday, after falling the most in a month in the previous session, as sticky U.S. inflation raised concerns an interest rate cut by the Federal Reserve may be delayed beyond June.
Gold's latest price drop comes as everything falls back to the inflation data, that feeds through into U.S. Fed's decision making, Michael Langford, chief investment officer at Scorpion Minerals Ltd said.
Langford expects a healthy correction of up to about 10% in gold prices from here.
Bullion fell 1.1% on Tuesday, after data showed U.S. consumer prices increased solidly in February, above forecasts and suggesting some stickiness in inflation.
This was gold's worst single-day decline since Feb. 13, when data showed consumer prices also increased more than expected in January.
Persons:
Michael Langford, Langford
Organizations:
Co, Federal, Scorpion Minerals Ltd, Traders, Treasury
Locations:
Bangkok, Thailand, U.S, Ukraine