As U.S. CPI Data Nears, Gold stays Over $1,700

Gold prices reversed recent gains, but maintained at a one-month high as traders anticipated US inflation data.

Bullion prices rose this week as the dollar fell ahead of the midterm elections, with early results showing Republicans still likely to win both houses of Congress despite Democrats surpassing predictions.

With vote counting still underway in a number of states, the election's result is still uncertain.

As uncertainties about U.S. fiscal policies depressed the dollar, gold prices rose.

Spot gold was $1,706.32 per ounce at 18:58 ET, while gold futures were $1,709.30 per ounce (23:58 GMT). Both assets fell 0.3% on Wednesday but gained 2% for the week.

Wednesday's dollar index rose 0.7%.

Now, attention turns to U.S. CPI statistics, which are expected to show that inflation remained strong in October. The reading might affect near-term U.S. monetary policy.

Several Fed members now favor moderate interest rate hikes. Chicago Fed President Charles Evans asked the bank to delay rate hikes to reduce economic impacts.

Market pricing indicates a 66% chance of a 50-basis-point rate rise in December. Smaller-than-expected rate hikes may soothe metal markets, but higher-than-expected rates would certainly depress sentiment in the long term.

Chinese demand signals helped steady copper prices on Thursday. Copper futures were flat at $3.6770 per pound following a 0.3% drop.

According to sources, China's major copper firms want the government to mine additional red metal due to worries of global supply shortages.

Mining delays in Chile and Peru and U.S. sanctions on Russian manufacturers have pressured global copper prices.

Medium-term copper prices could benefit from this supply constraint, as electric vehicle demand is expected to rise.