Gold Rises Amid Dollar Easing Ahead of Inflation Data
Gold prices rose by 0.6% to $4,432.79 per ounce on Tuesday as the US dollar slipped. The US dollar index fell by 0.3%, making greenback-priced metals more affordable for other currency holders.
The upcoming inflation data is expected to shape expectations for the Federal Reserve's next policy move. The US producer price index data is due on Thursday and the consumer price index report is scheduled for Friday.
Gold has been locked in a battle between buyers and sellers, with neither party showing enough conviction to drive a sustained and persistent directional move, according to Chris Weston, head of research at Pepperstone Group. Elevated rates tend to reduce the appeal of non-yielding gold, but Marex analyst Edward Meir said 'We don't see gold falling back too much if and when the central bank does raise rates.'