XAU/USD: Gold Flat Ahead Of US Consumer Inflation

 | Oct 22, 2014 07:19AM ET

Gold is calm on Wednesday, as the spot price stands at $1245.94 per ounce in the European session. In the US, today’s highlights are Core CPI and CPI. The markets are keeping expectations low for the September readings.

Although US economic numbers have been strong overall, the lack of inflation remains a serious concern. Last week, PPI slipped to -0.1%, its first decline in four months. We’ll get a look at consumer inflation numbers on Wednesday, with the release of Core CPI and CPI. Soft figures would be an indication of weak consumer demand, which could hamper the US recovery.

Despite the efforts of the ECB, inflation levels in the Eurozone remain anemic, as German PPI came in at a flat 0.0%, shy of the estimate of 0.1%. The indicator has not produced a gain since December, as Germany continues to struggle with a lack of inflation. Eurozone Current Account, which is closely linked to currency demand, posted a surplus of EUR 18.9 billion, little changed from the previous release of EUR 18.7 billion. This reading disappointed the markets, as the estimate stood at EUR 21.3 billion.