REUTERS

Gold prices edged lower on Thursday, hovering near record highs, as investors awaited US consumer inflation data due later in the day following weaker-than-expected producer price figures that reinforced expectations of a rate cut next week.

Spot gold was down 0.2 percent at $3,632.48 per ounce, as of 0621 GMT. Bullion hit a record high of $3,673.95 on Tuesday.

US gold futures for December delivery fell 0.3 percent to $3,669.80.

“Gold seems to be consolidating recent gains as markets wait for US Consumer Price Index data and what it’ll mean for Fed rate cut expectations,” said Ilya Spivak, head of global macro at Tastylive.

US producer prices unexpectedly fell in August due to lower trade services margins and modest increases in goods costs.

Investors are now focused on US CPI data, due at 1230 GMT, with a Reuters poll forecasting a 0.3 percent monthly increase in August following a 0.2 percent rise in July. CPI is expected to have grown 2.9 percent year-on-year, compared with 2.7 percent in July.