Gold eases to $4,114.48 as traders await US inflation data
Gold fell 0.6% to $4,114.48 an ounce on Tuesday as traders locked in profits from the previous session's rally and positioned for US inflation figures that could settle the Federal Reserve's next move.
Spot bullion had climbed more than 1% a day earlier. December US gold futures held a small gain, up 0.2% at $4,123.50 an ounce, according to Token Times.
"It's just a bit of churn in the market. Prices are easing back from the highs reached during the US session, which could be attributed to profit-taking," said Kyle Rodda. He added that if the US avoids escalating conflict in the Middle East and oil prices keep reversing, that would help gold through its effect on the dollar, inflation and rate expectations.
President Donald Trump said on Monday he would hold off on new military strikes against Iran for now, after appeals from regional countries including Qatar's prime minister in White House talks. Oil prices fell on Tuesday, extending the previous day's losses.
The rate picture is doing the heavier lifting. Richmond Fed President Tom Barkin said on Monday the central bank should move "with care" on inflation, which he called its greatest risk, and that he has no base case for December. Traders nonetheless see an 84% chance of a December rate rise, according to CME's FedWatch tool. Higher rates raise the opportunity cost of holding an asset that pays no yield.
The consumer price index lands later on Tuesday, with producer prices following on Friday. Among other metals, silver slipped 0.5% to $53.14 an ounce, platinum held at $1,576.44 and palladium dropped 0.2% to $1,039.47.
