Gold slips below $2,500 mark, market awaits further Fed guidance
Sept 9 (Reuters) -Gold prices remained steady on Monday and was trading slightly below the key $2,500 an ounce level, as the market awaited August inflation data for further insights into the anticipated Federal Reserve interest rate cut this month.
FUNDAMENTALS
* Spot gold XAU= was nearly unchanged at $2,497.53 per ounce, as of 0021 GMT. U.S. gold futures GCcv1 edged 0.1% higher to $2,526.40.
* Data on Friday showed that nonfarm payrolls increased by 142,000 jobs last month after a downwardly revised 89,000 rise in July. Economists polled by Reuters had forecast payrolls increasing by 160,000 jobs.
* Fed policymakers signalled they are ready to kick off a series of interest rate cuts at the U.S. central bank's meeting in two weeks.
* Their (Fed officials) remarks suggested a likely quarter-point rate cut, with potential for larger reductions if the job market weakens further.
* Fed funds futures traders are now pricing a 71% chance of a 25 basis point cut at the Fed's Sept. 17-18 meeting, and a 29% chance of a 50 bp reduction, according to the CME FedWatch Tool.
* A low interest rate environment tends to boost non-yielding bullion's appeal.
* This week, traders will be watching for the August U.S. Consumer Price Index (CPI) due on Wednesday, followed by Producer Price Index (PPI) on Thursday.
* Meanwhile, China's central bank held back on buying gold for its reserves for a fourth straight month in August, official data showed on Saturday.
* Elsewhere, gold discounts in India surged to a seven-week high last week as rising prices hurt demand, while traders and analysts noted that Asian consumers would likely utilise any price declines. GOL/AS
* Spot silver XAG= rose 0.3% to $28.01 per ounce, platinum XPT= gained 0.3% to $924.02 and palladium XPD= was up nearly 1% at $919.76.
DATA/EVENTS (GMT)
0130 China PPI, CPI YY Aug
1900 US Federal Reserve issues Consumer Credit for July
Reporting by Daksh Grover in Bengaluru; Editing by Rashmi Aich
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