Dollar Weakness Sends Gold Prices Up Ahead of Inflation Data

Gold prices rose on Tuesday as the US dollar weakened, setting the stage for potentially higher expectations ahead of key inflation data. The metal's value climbed 0.6% to $4,429.89 per ounce by 0208 GMT.

The dollar index slipped 0.4%, making gold more affordable for holders of other currencies. However, the outlook remains uncertain as market participants wait for upcoming data on US inflation and job growth.

Elevated interest rates tend to reduce the appeal of non-yielding assets like gold, but analysts expect its price to stabilize if the Federal Reserve raises rates next week.