Precise Investors Editorial Team
Spot gold was up 0.1% at $4,407.27 per ounce
Gold edged higher on Tuesday as the dollar slipped, with investors focused on upcoming U.S. inflation data that could shape expectations for the central bank’s next policy move.
Spot gold was up 0.1% at $4,407.27 per ounce, as of 0645 GMT. U.S. gold futures for December delivery dropped 0.6% at $4,452.10.
The U.S. dollar index ticked 0.3% lower, making dollar-priced metals more affordable for other currency holders.
Gold remains locked in a battle between buyers and sellers, with neither party showing enough conviction to drive a sustained and persistent directional move, said Chris Weston, head of research at Pepperstone Group.
The U.S. producer price index data is due on Thursday and the consumer price index report is scheduled for Friday.
Spot gold declined in the previous two sessions after data showed U.S. job growth accelerated sharply in August, while the unemployment rate held steady at 4.1%, suggesting an improvement in the labour market.
Traders see a 58.4% chance of a rate hike at the U.S. central bank’s policy meeting next week, according to the CME FedWatch Tool. Higher rates tend to reduce the appeal of non-yielding gold.
We don’t see gold falling back too much if and when the central bank does raise rates. More important than the rate move is the notion that markets are somewhat uneasy about what the Fed and the Treasury are signalling, Marex analyst Edward Meir said in a monthly note.
Among other metals, spot silver rose 0.1% to $66.21 per ounce, platinum declined 0.1% to $1,824.58 and palladium shed 0.2% to $1,385.50.
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