(Bloomberg) -- Gold edged higher for a third day as traders look ahead to the release of key US inflation figures later on Thursday.
The core consumer price index, which excludes food and energy, is expected to show a small increase of 0.2% in June. That might bolster the case for monetary easing.
On Wednesday, Federal Reserve Chair Jerome Powell wrapped up a second day of testimony in Washington, where he said the central bank doesn’t need inflation below 2% before cutting interest rates. Swaps traders now see two reductions in 2024, bolstering bullion which doesn’t pay interest.
Central-bank buying remains a support for the precious metal.
The Bank of Uganda said it plans to initiate a domestic gold-purchasing program to build its foreign reserves and minimize risks on reserve investments, according to its latest quarterly State of the Economy Report.
Spot gold was up 0.5% to $2,383.52 an ounce as of 10:09 a.m. in London, while the Bloomberg Dollar Spot Index fell 0.1%. Silver edged up toward $31 an ounce, while platinum and palladium both fell.
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