FX.co ★ Gold Futures Settle Lower As Dollar Rises Ahead Of U.S. Inflation Data

Gold prices drifted lower on Wednesday as the dollar firmed against most of its major rivals ahead of the crucial U.S. inflation data, due on Thursday.

Traders also looked ahead to the outcome of the U.S. midterm elections.

According to reports, the Republicans are likely to earn a narrow majority in the House. Several candidates backed by former President Donald Trump have reportedly underperformed.

The consumer price data, due tomorrow, might provide clues about the path for interest rates ahead.

Economists expect the data to show a modest slowdown in the annual rate of consumer price growth, which could add to optimism about a slowdown in the pace of rate hikes.

The dollar index climbed to 110.50 gaining nearly 0.8%.

Gold futures for December ended lower by $2.30 or about 0.1% at $1,713.70 an ounce.

Silver futures for December ended down $0.175 at $21.327 an ounce, while Copper futures for December settled at $3.7000 per pound, up $0.0175 from the previous close.

Data from China showed consumer prices in the world's second largest economy increased by 2.1% (year-on-year) in October. Economists had expected China's consumer price inflation to rise 2.4% in the month, down from 2.8% a month earlier.