US CPI data due on Wednesday, PPI on Thursday
August39;s headline CPI is expected to rise 0.2 on mm basis
Traders see 71 chance of 25bps Fed rate cut this month

Sept 10 Reuters Gold prices eased on Tuesday, pressured by a firmer dollar, while traders braced for key U.S. inflation figures that could offer hints about the size of the Federal Reserve39;s interest rate reduction next week.

Spot gold dipped 0.1 to 2,502.80 per ounce, as of 0526 GMT. U.S. gold futures remained steady at 2,532.00.

The dollar hit a 1week high, making gold more expensive for other currency holders.

Market attention will turn towards U.S. Consumer Price Index CPI data on Wednesday and the Producer Price Index PPI reading on Thursday.

The headline CPI is expected to have risen 0.2 on a monthonmonth basis in August, according to a Reuters poll, unchanged from July.

The inflation data is expected to reflect further disinflation and offer the goahead for the Fed to ease rates… Barring any significant surprises in the data, gold prices should remain wellsupported above the 2,500 level. We expect gold prices to touch over 2,660 in the coming months, IG market strategist Yeap Jun Rong said.

Gold prices remain locked in its consolidation phase within a broader upward trend for now, as gains were capped by a slight rebound in the US dollar.

Lower interest rates reduce the opportunity cost of holding a zeroyield bullion.

The Fed is all but certain to ease rates when it meets next week, with…