Gold prices gained on Tuesday as the dollar and Treasury yields retreated from recent highs ahead of crucial US inflation and jobs data this week that could define the outlook for interest rates.
Spot gold climbed 0.3 percent to $1,924.84 per ounce, hovering close to its highest level since Aug. 10 reached on Monday. US gold futures gained 0.3 percent to $1,952.90.
Gold prices are seeing short-covering by short-term speculators as a minor key resistance at $1,907 that coincided with the 200-day moving average has been surpassed, said Kelvin Wong, a senior market analyst, Asia Pacific, OANDA.
Helping gold further, the US dollar dipped 0.2 percent against a basket of major currencies, while benchmark US 10-year Treasury yields moved further away from their highest levels since 2007 hit last week.
A weaker dollar tends to make gold, which yields no interest, less expensive for other currency holders.
Among the string of US economic data scheduled to be released this week, focus would be on the Federal Reserve’s preferred inflation measure, the PCE price index due on Thursday, and the non-farm payrolls report on Friday.
