Dollar Eases as Gold Prices Rise Ahead of Inflation Data

Gold prices rose on Tuesday as the US dollar eased, making greenback-priced metals more affordable for other currency holders. Spot gold was up 0.3% at $4,418.79 per ounce.

The move comes ahead of key inflation data releases this week, with the US producer price index due on Thursday and the consumer price index scheduled for Friday.

A rate hike by the Federal Reserve next week remains a possibility, with traders currently seeing a 60% chance of an increase in interest rates, according to the CME FedWatch Tool. Elevated rates tend to reduce the appeal of non-yielding gold.