Gold prices rose on Tuesday on a weaker dollar ahead of key of economic data from China and the United States due in the week, as well as US Federal Reserve Chair Jerome Powell’s upcoming speech, to assess how rate hikes would pan out.
Spot gold rose 0.3 percent to $1,928.14 per ounce while US gold futures were up 0.2 percent to $1,937.70.
“If the dollar falls but yields edge up (softer Fed tone, neutral/upbeat data), gold may stumble but remain muted as silver, platinum and palladium rise,” said Ilya Spivak, head of global macro at Tastylive.
“Looking ahead, (gold) will continue to try reconciling signs of a deepening slowdown in global economic activity with this hawkish central bank turn.”
The dollar index edged down 0.1 percent, making greenback-priced bullion more attractive for overseas buyers.
Benchmark US yields were at session-highs, rising from a near three-week low in the previous session.
Economic data including China’s Purchasing Managers’ Index, and a key US inflation gauge this week could provide a clearer picture on the macroeconomic situation.
