Gold Dips On Profit Taking Ahead Of US Inflation Reading

(RTTNews) - Gold dipped on Thursday but hovered near record levels on increased uncertainty over the U.S. economy.

Spot gold edged down by 0.3 percent to $4,326.80 an ounce while U.S. gold futures were down 0.4 percent at $4,357.65.

The dollar index was broadly firm ahead of central bank meetings in Europe and the U.K. as well as key U.S. CPI data.

The European Central Bank is expected to hold interest rates steady for its fourth meeting in a row as inflation remains in check.

Elsewhere, the Bank of England is seen cutting interest rates at its final meeting of the year after a sharp slowdown in inflation and a weakening in economic growth.

Traders also wait for the Bank of Japan policy meeting on Friday, with the central bank widely expected to deliver a rate hike to tackle persisting inflation.

The key U.S. November CPI data will be published later in the day, followed by the Personal Consumption Expenditures price index on Friday.

The yield on 10-year U.S. Treasuries fell slightly on comments from a Federal Reserve official supporting the case for interest-rate cuts.

Fed governor Chris Waller, the top contender to lead the U.S. central bank, said Wednesday that jobs growth was now "close to zero" and that there is scope to cut rate by as much as a percentage point next year to support employment.