Gold Prices Eased Amid Stronger Dollar Ahead of Key Inflation Data
Gold prices eased on Tuesday as a firm US Dollar capped upside momentum. The XAU/USD pair traded at $4,381, down 0.18% in the day after hitting a daily high of $4,435. This move comes ahead of crucial US inflation data releases and elevated energy-price risks.
The US economic docket has been quiet so far this week, with the release of the ADP Employment Change 4-week average showing a decelerating labor market. The report also noted that existing home sales fell further in July by 1.7% to 4.06 million due to higher mortgage rates and house prices.
On Wednesday, traders will focus on the US Consumer Price Index (CPI) release, with analysts expecting July's headline inflation to be 3.4% YoY, a tenth lower than June. The Core CPI is also projected to decrease by the same margin to 2.5% YoY.
Chicago Federal Reserve President Austan Goolsbee reiterated that 'prices have been rising too fast, we have an inflation problem, and people hate inflation.'