gold rate today: Gold flat as traders await US inflation data

Gold prices were flat during early Asian hours on Thursday, as traders awaited key US inflation data that could influence the Federal Reserve’s policy path. FUNDAMENTALS

* Spot gold held its ground at $1,876.93 per ounce, as of 0011 GMT. US gold futures rose 0.1% to $1,879.80.

* Investors’ focus remains on the US consumer price index report due at 1330 GMT.

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Federal Reserve bank leader Susan Collins said she is inclined to raise interest rates by a quarter percentage point at the central bank’s upcoming policy meeting, the New York Times reported on Wednesday.

* Although gold is seen as an inflation hedge, rising rates increase the opportunity cost of holding bullion.

* Barclays said it sees a mild recession in the US from second quarter and lasting through the fourth, citing declining activity in the manufacturing sector.

* The European Central Bank expects to continue raising interest rates “significantly” at future meetings, at a sustained pace, ECB policymaker Pablo Hernandez de Cos said on Wednesday. * Indian gold refiners have nearly stopped imports of gold dore, a semi-pure alloy, as gray market operators offer hefty discounts to market rates and cut into their slender margins, making business a losing proposition, industry officials say.

* Spot silver edged up 0.1% to $23.44, platinum fell 0.1% to $1,069.47 and palladium slipped 0.1% to $1,772.48.