Dollar Eases, Gold Prices Rise Ahead of Inflation Data

Gold prices rose on Tuesday as the US dollar slipped, sparking hopes that upcoming inflation data could signal a more dovish stance from the Federal Reserve. The US dollar index ticked 0.4% lower, making gold more affordable for other currency holders.

Spot gold was up 0.6% at $4,429.89 per ounce as of 0208 GMT, while US gold futures for December delivery were little changed at $4,475.10. Analysts say that the data is crucial in determining the Fed's next policy move and could shape expectations.

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