Gold prices fell on Tuesday, pressured by a stronger dollar as investors awaited US inflation data for fresh indications about the Federal Reserve’s interest-rate path.
Spot gold fell 0.2% to $4,164.45 an ounce by 0201 GMT, after reaching a one-week high during Monday’s session.
US gold futures for December delivery fell 0.1% to $4,187.90 an ounce.
The dollar remained near its 18-month high reached in the previous session, making dollar-denominated metals more expensive for holders of other currencies.
US consumer price index data is due on Wednesday, followed by producer price index data on Thursday.
Kyle Rodda, senior financial market analyst at Capital.com, said: “The CPI data will be crucial for gold’s short-term trajectory.”
He added that if inflation comes in higher than expected, particularly core inflation, it could slightly strengthen expectations of a rate hike in October, potentially putting further pressure on gold prices.
Gold typically becomes less attractive when interest rates are high, as investors tend to favor assets that generate returns.
The CME Group’s FedWatch tool shows traders are pricing in a 21% probability of a US rate hike this month, compared with an 88% probability of a hike in December.
Saudi Arabia said it was facing a new wave of attacks and that Riyadh airport would remain closed for the time being, after a missile strike targeted the airport’s departure terminal on Saturday, killing several people. Yemen’s Iran-aligned Houthi group claimed responsibility for the attack.
Among other precious metals, spot silver fell 0.5% to $60.01 an ounce, platinum declined 0.2% to $1,682.47, and palladium dropped 0.5% to $1,137.69.
Source: Reuters
