Gold gains as dollar, yields slip ahead of US inflation data

Gold price: Gold prices edged higher on Tuesday as the dollar and bond yields fell ahead of U.S. inflation data that could offer more cues on the Federal Reserve's rate-hike path. Spot gold was up 0.4 per cent at $1,931.83 per ounce by 02:11 p.m. EDT (1811 GMT), set for a third consecutive session of gains. U.S. gold futures rose 0.3 per cent to $1,937.10. Making gold cheaper for holders of other currencies, the dollar index (.DXY) fell 0.3 per cent to its lowest level since May 11. Benchmark 10-year U.S. Treasury yields also slipped.

"If we have a soft inflation reading, it will be positive for gold and prices might go up to $1,950. I think it will be tough for gold to break below $1,900 level on a hot report," said Edward Moya, senior market analyst at OANDA. "Rate hikes are not going to break gold's back, but it might kill the economy. So there is some support for gold due to this reason."

All eyes are on U.S. consumer prices data due on Wednesday, which is expected to show prices cooled on an annual basis in June. However, markets are pricing in a 25-basis-point rate hike from the Fed later this month after last week's jobs report pointed to a resilient U.S. economy. FEDWATCH Gold is used as a safe investment during times of political and financial uncertainty, but higher interest rates increase the opportunity cost of holding non-yielding bullion.

TRENDING NOW

Anil Singhvi strategy December 1: Important levels to track in Nifty50, Nifty Bank today

LPG cylinder price hike today: Commercial LPG gas cylinder price increased by Rs 21

FIRST TRADE: Nifty hits record high, Sensex up 300 pts post-encouraging Q2 GDP print

RBI fines Bank of America, N.A., HDFC Bank

Instagram Threads now supports 'all languages' in search

Telangana Exit Poll 2023: Will BRS return to power for third consecutive term?

Flair Writing IPO Listing LIVE updates: Strong listing expected today

iQOO 12: How capable is this gaming smartphone's camera? Find out

Share Market Today LIVE: Nifty scales all-time high of 20,222.8, Sensex trades nearly 300 pts higher

Rajasthan Assembly Election Exit Polls Results 2023 LIVE: BJP holds edge in close fight with Congress in Rajasthan — Check BJP, Congress seat projection

OPEC+ agrees to deepen voluntary oil output cuts

Madhya Pradesh Election Exit Polls Results 2023 Live: Congress and BJP neck and neck in Madhya Pradesh; Check BJP, Congress seats

Nifty 50 set to open at new record high, buoyed by strong growth data

Chhattisgarh Exit Poll Results 2023 Live: Will Congress retain power in state? Here is what exit polls suggest

Dow rallies to year's highest close, caps blockbuster month

Spot silver fell 0.1 per cent to $23.09 per ounce, platinum eased 0.1 per cent to $925.76, while palladium rose 0.8 per cent to $1,249.94. "In the very long term, silver is expected to trade significantly above the $26/oz mark and should increasingly decouple from gold," TD Securities wrote in a note.

Catch latest minute-by-minute stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.