Dollar Dips, Gold Gains on Inflation Data Uncertainty

Gold prices rose on Tuesday as the US dollar slipped, making greenback-priced metals more affordable for other currency holders. The US dollar index fell 0.4 per cent, which contributed to gold's increase.

The US producer price index data is due on Thursday, and the consumer price index data is scheduled for Friday. These inflation data releases could shape expectations for the US Federal Reserve's next policy move.

Chris Weston, head of research at Pepperstone Group, noted that 'gold remains locked in a battle between buyers and sellers, with neither party showing enough conviction to drive a sustained and persistent directional move.'