Gold prices were steady on a weaker dollar on Tuesday, although bullion struggled for momentum as investors were wary of placing big bets ahead of US inflation data that could influence the Federal Reserve’s policy trajectory.
Spot gold held its ground at $1,926.19 per ounce. US gold futures were flat at $1,930.20.
Bullion is being supported by a weaker dollar and yields as the Fed seems to imply that they’re at the end of the tightening cycle, “but gold bugs appear hesitant to overcommit ahead of Wednesday’s US inflation report,” said Matt Simpson, senior market analyst at City Index.
The dollar was near a two-month low on prospects of lower rates, while benchmark US yields hovered near Monday’s lows at 4.0018 percent.
A weaker dollar makes gold cheaper for holders of foreign currencies.
Several US central bank officials on Monday said the Fed will likely need to raise interest rates further to bring down inflation that is still too high, but the end to its current monetary policy tightening cycle is getting close. – Reuters
