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Gold Flat Amid Tepid Inflation Data

Gold futures were flat Tuesday morning amid the release of U.S. consumer price data.

Gold was up $2 at $1321 an ounce, having seen little movement over the past few sessions.

The annualized rate of core inflation was up only 1.8%, once again short of the Federal Reserve's 2% target.

As such, the Fed is expected to proceed gradually with interest rate hikes. While a March rate hike is on the cards, the Fed is likely to raise rates only three times in 2018.

Last week, it ws announced that the U.S. created 313,000 new jobs in February, the biggest gain since mid-2016. However, the 12-month increase in worker pay declined to 2.6% from 2.8%, a sign that wages may not be rising as quickly as imagined.

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