Gold prices were trading marginally lower during Asian deals on Monday, with market participants positioning ahead of the Federal Reserve's closely watched interest rate decision on Wednesday (Thursday AEST).
By 4:15 pm AEST (6:15 am GMT), spot gold prices were down 0.4% at US$4,329.26 per ounce.
Last week, expectations for a Fed interest rate hike were boosted following the release of hotter-than-expected producer price index (PPI) and consumer price index (CPI) reports for August.
The PPI report showed that headline producer inflation on an annualised basis accelerated to 5.4% from 4.8% in July.
On the consumer inflation front, readings for both headline and core inflation remained in line with estimates, but month-on-month core inflation rose 0.3%, faster than expectations and the previous reading of 0.2%.
According to the CME Group FedWatch Tool, the odds of the Fed raising interest rates at its policy meeting on Wednesday have increased to 86.7%, up from 59.4% a week ago.
