Gold prices declined on Tuesday as investors took profits following bullion’s more than 1% gain in the previous session, while awaiting US inflation data for indications of the Federal Reserve’s future monetary policy.
Spot gold fell 0.6% to $4,114.48 per ounce as of 0430 GMT. Meanwhile, US gold futures for December delivery edged up 0.2% to $4,123.50, Reuters reports.
US President Donald Trump said on Monday that he planned to refrain from launching further military strikes against Iran for the time being, following appeals from regional countries, including Qatar’s prime minister during talks at the White House.
Oil prices declined on Tuesday, extending losses recorded in the previous session.
According to CME’s FedWatch tool, traders currently see an 84% probability that the US Federal Reserve will raise interest rates in December.
Higher interest rates increase the opportunity cost of holding non-yielding assets such as gold, making the precious metal less attractive to investors.
Market participants are now awaiting the consumer price index (CPI) report, due later on Tuesday, followed by producer price index (PPI) data on Friday.
Among other precious metals, spot silver fell 0.5% to $53.14 per ounce, while platinum remained steady at $1,576.44. Palladium declined 0.2% to $1,039.47.
