Gold Edges Up as Dollar Weakens Ahead of Inflation Data

Gold prices rose on Tuesday as the US dollar weakened, ahead of key inflation data releases that could influence expectations for the Federal Reserve's next policy move. Spot gold was up 0.3% at $4,418.79 per ounce, while US gold futures for December delivery were down 0.3% at $4,464.80.

The US dollar index slipped 0.3%, making metals priced in dollars more affordable for other currency holders. The upcoming releases of the US producer price index and consumer price index data on Thursday and Friday respectively will be closely watched by investors.

Despite being known as an inflation hedge, gold's appeal can be reduced when interest rates are high. Deutsche Bank expects the European Central Bank to raise interest rates by 25 basis points in December, citing persistent energy risks that keep pressure on the inflation outlook.