Shafaq News/ Gold prices eased on Tuesday, pressured by a firmer dollar, while traders braced for key U.S. inflation figures that could offer hints about the size of the Federal Reserve's interest rate reduction next week.
Spot gold dipped 0.1% to $2,502.80 per ounce, as of 0526 GMT. U.S. gold futures remained steady at $2,532.00.
The dollar hit a 1-week high, making gold more expensive for other currency holders.
Market attention will turn towards U.S. Consumer Price Index (CPI) data on Wednesday and the Producer Price Index (PPI) reading on Thursday.
The headline CPI is expected to have risen 0.2% on a month-on-month basis in August, according to a Reuters poll, unchanged from July.
"The inflation data is expected to reflect further disinflation and offer the go-ahead for the Fed to ease rates... Barring any significant surprises in the data, gold prices should remain well-supported above the $2,500 level. We expect gold prices to touch over $2,660 in the coming months," IG market strategist Yeap Jun Rong said.
"Gold prices remain locked in its consolidation phase within a broader upward trend for now, as gains were capped by a slight rebound in the US dollar."
Lower interest rates reduce the opportunity cost of holding a zero-yield bullion.
The Fed is all but certain to ease rates when it meets next week, with traders pricing in a 71% chance of a 25-basis-point cut versus a 29% chance of a 50-bp reduction, according to the CME FedWatch Tool.
According to a New York Federal Reserve report released on Monday, the U.S. public's expectations for inflation remained stable last month, even as current price pressures continued to ease.
Spot silver fell 0.2% to $28.29 per ounce. Platinum gained 0.3% to $940.77 and palladium was up by 0.6% to $952.15.
(Reuters)