Gold prices rose on Tuesday, supported by the dollar’s decline, while investors awaited US inflation data this week, which may provide more clarity on the path of monetary policy tightening by the Federal Reserve (the US central bank).
And gold rose in spot transactions 0.3% to $ 1794.10 an ounce (an ounce) by 1800 GMT, and US gold futures rose 0.32% to $ 1811 an ounce.
The dollar index fell 0.13% and the greenback’s decline makes gold less expensive for overseas buyers.
Markets are awaiting the US consumer price report for July, which will be released on Wednesday. Analysts polled by Reuters expect inflation to fall to 8.7% from 9.1% in June.
Among other precious metals, silver fell in spot transactions 0.77% to $ 20.49 an ounce. Platinum fell 0.8% to $932 an ounce, while palladium rose 0.12% to $2,233.60 an ounce.
Investors are waiting for US consumer price data, to gauge whether the Fed will ease its fight against inflation and create a better environment for economic growth.
Inflation expectations are a vital component that is closely watched by the US central bank’s monetary policy makers, as they actively increase interest rates to contain price pressures that have reached four-decade highs.
Analysts polled by Reuters had expected annual inflation in America to fall to 8.7 percent in July, compared to 9.1 percent in the previous month.
Financial markets are in anticipation of inflation readings scheduled for tomorrow in the world’s largest economy, after strong data on employment in the United States disappointed hopes that the Federal Reserve might ease the series of interest rate hikes in order to curb rising inflation.
The Senate passed a $430 billion spending bill aimed at combating climate change, lowering drug prices and raising taxes, which would reduce expected inflation in the medium and long term, as well as the budget deficit, according to ratings agency Moody’s.
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