Gold prices moved within a narrow range on Tuesday, as investors refrained from buying ahead of the release of U.S. inflation data, which could provide a clearer picture of whether the Federal Reserve will continue to raise interest rates. Spot gold stabilized at $1,945.40 an ounce by 07:33 GMT after hitting a low not seen in over three weeks on Monday. U.S. gold futures also held steady at $1,949.50.
Traders around the world are awaiting the Consumer Price Index (CPI) data scheduled for release at 13:30 GMT on Tuesday, as well as the Producer Price Index (PPI) data set to be released on Wednesday. Economists on Wall Street expect a slowdown in the CPI increase to 0.1% in October, down from a rise of 0.4% in September, according to a Reuters survey. However, core inflation is expected to remain unchanged at 0.3% compared to September.
Despite gold being a hedge against inflation, rising interest rates increase the opportunity cost of holding the non-yielding precious metal. For other precious metals, silver was stable at $22.30 an ounce, while platinum increased by 0.6% to $869.20 and palladium by 0.2% to $983.89.
