Gold prices flat as US inflation data dominates

SINGAPORE, Dec 11 (Reuters): Gold prices were flat on Wednesday as investors awaited a US inflation print that could influence the likelihood of a Federal Reserve's interest rate cut next week and offer clues on the central bank's 2025 outlook.

Spot gold was steady at $2,695.91 per ounce, as of 1216 GMT, having hit its highest since Nov. 25 earlier in the session. US gold futures rose 0.4 per cent to $2,727.80.

A line chart titled "Spot gold price in USD per oz" that tracks the metric over time.

Markets are focused on upcoming inflation numbers, with a 25-basis-point Fed rate cut next week already priced in, said StoneX analyst Rhona O'Connell, adding that attention will be on Chair Powell's post-meeting commentary next week for further policy insights.

The US Consumer Price Index (CPI) data is due at 1330 GMT, with the core CPI projected to have risen 0.3 per cent on a month-on-month basis and 3.3 per cent annually.

"An expected (CPI) number pretty much gives the Fed green light to cut (interest rates) next week and that might be the catalyst we need to see for gold," said Kyle Rodda, financial market analyst at Capital.com.