Dollar Slump Sends Gold Prices Slightly Higher

Gold prices rose slightly on Tuesday as the US dollar slipped, making it cheaper for foreign investors to buy gold. The US dollar index fell by 0.3%, while spot gold increased by 0.1% to $4,407.27 per ounce.

The move in gold prices is being closely watched ahead of upcoming inflation data releases on Thursday and Friday. Analysts believe that the data will influence expectations for the next US Federal Reserve policy meeting, where a rate hike is possible.

However, some analysts are cautious about the impact of a potential rate hike on gold prices. 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 move.