Gold nudges higher after US inflation data
Gold prices edged higher on Tuesday after U.S. inflation data sustained expectations of Federal Reserve interest rate cuts, while attention turned to other key economic data due this week.
Spot gold rose 0.1% to $3,347.34 an ounce at 1:50 p.m. EDT (1750 GMT).
The dollar eased, making bullion cheaper for buyers holding other currencies.
The U.S. Consumer Price Index rose 0.2% last month after gaining 0.3% in June. For the 12 months through July, the CPI advanced 2.7%. Economists polled by Reuters had forecast the CPI rising 0.2% in July and increasing 2.8% year-on-year.
"Inflation numbers appear mixed but are supportive of rate cuts," said RJO Futures market strategist Bob Haberkorn.
"Traders remain cautious as we're at a critical point and awaiting further economic indicators."
Traders maintained bets on September and December U.S. rate cuts after the CPI data.
Other data due this week includes the U.S. Producer Price Index, weekly jobless claims, and retail sales.
Meanwhile, the United States and China have extended a tariff truce for 90 days, staving off triple-digit duties on each other's goods.
Prices remain range-bound between key support and resistance levels as investors digest recent tariff developments, said Razan Hilal, market analyst at FOREX.com.
Lower interest rates boost the appeal of gold, which yields no interest. Gold also tends to perform well during periods of uncertainty, as it is viewed as a safe-haven asset.
U.S. gold futures for December delivery settled 0.2% lower at $3,399 an ounce. Prices dropped more than 2% on Monday after U.S. President Donald Trump said on social media that he would not impose tariffs on imported bullion. A report that Washington had imposed tariffs on imports of 1 kg bullion bars sent U.S. gold futures to record highs on Friday.
Among other metals, spot silver gained 0.9% to $37.92 an ounce, platinum firmed 0.9% to $1,338.73, while palladium dropped 0.5% to $1,129.57.
Source: Reuters
