Gold prices dipped slightly on Tuesday, pressured by the dollar reaching a one-week high, making the precious metal more expensive for holders of other currencies. Spot gold fell by 0.1% to $2,502.80 per ounce, while U.S. gold futures remained steady at $2,532.00. Market attention now shifts to key U.S. inflation data, with the Consumer Price Index (CPI) data set to be released on Wednesday and the Producer Price Index (PPI) on Thursday.
Economists expect the CPI to show a 0.2% rise for August, unchanged from July, according to a Reuters poll. “The inflation data is expected to reflect further disinflation, potentially giving the Federal Reserve the green light to ease rates,” said IG market strategist Yeap Jun Rong. Gold prices are expected to remain well-supported above $2,500 and could rise to over $2,660 in the coming months.
Lower interest rates generally benefit gold, as they reduce the opportunity cost of holding non-yielding bullion. Meanwhile, silver fell by 0.2% to $28.29 per ounce, platinum gained 0.3% to $940.77, and palladium rose by 0.6% to $952.15.