SINGAPORE: Gold prices inched lower in Asian trade on Tuesday as a rebound in dollar dented the metal’s appeal, while investors awaited US consumer price data to measure whether inflationary pressure was building.
Spot gold was down 0.1% at $1,833.00 per ounce by 0721 GMT, after hitting its highest since Feb. 11 at $1,845.06 on Monday.
US gold futures fell 0.2% to $1,834.20 per ounce.
“Although gold extended higher earlier today, it’s struggling to continue building momentum and part of that is concern about inflation it isn’t a given that those job numbers mean that the Fed won’t act,” DailyFX currency strategist Ilya Spivak said.
There is significant resistance for gold within the $1,855-$1,875 zone, while support is around the $1,800 level, Spivak said.
Investors are now waiting for the US consumer price index report due on Wednesday to gauge inflationary pressure and the Federal reserve’s policy stance.
“The scope for further declines (in gold prices) may be modest,” HSBC analysts said in a note, adding that a decline in yields offers gold a chance to rally.
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