Traders see 75 chance of 25 bp cut this month
China39;s cenbank held back on buying gold for 4th straight month
U.S. CPI data on Wednesday

Sept 9 Reuters Gold prices edged lower as the dollar firmed on Monday, while investors awaited the U.S. inflation print to firm up bets on the size of a likely reduction in Federal Reserve interest rates.

Spot gold eased 0.2 to 2,493.34 per ounce, as of 0727 GMT. U.S. gold futures edged 0.1 lower to 2,521.80.

The dollar rose 0.3, making gold more expensive for other currency holders.

Major data points this week include the U.S. Consumer Price Index CPI for August on Wednesday, followed by Producer Price Index PPI on Thursday.

If this weeks CPI data comes in below expectations, a stronger story will play out for gold, but currently the resilient dollar is acting as a barrier for it, said Tim Waterer, chief market analyst at KCM Trade.

Support in the 2,4702,480 range has limited downside moves for gold, so this will be a key area to watch in case gold comes under selling pressures.

A low interest rate environment tends to boost nonyielding bullion39;s appeal.

Fed funds futures traders are now pricing a 75 chance of a 25basis point cut at the Fed39;s Sept. 1718 meeting, and a 25 chance of a 50 bp reduction, according to the CME FedWatch Tool.

Data on Friday showed that U.S. employment increased less than expected in August, but a drop in the jobless rate to 4.2 suggested the labor market was not falling off the cliff to…