NEW YORK: Gold prices edged higher on Tuesday after US inflation data sustained expectations of Federal Reserve interest rate cuts, while attention turned to other key economic data due this week.
Spot gold rose 0.2 percent at $3,349.60 an ounce at 12:06 p.m. EDT (1606 GMT).
The dollar eased, making bullion cheaper for buyers holding other currencies.
The US Consumer Price Index rose 0.2 percent last month after gaining 0.3 percent in June. For the 12 months through July, the CPI advanced 2.7 percent. Economists polled by Reuters had forecast the CPI rising 0.2 percent in July and increasing 2.8 percent year-on-year.
"Inflation numbers appear mixed but are supportive of rate cuts," said RJO Futures market strategist Bob Haberkorn.
"Traders remain cautious as we’re at a critical point and awaiting further economic indicators."
Traders maintained bets on September and December US rate cuts after the CPI data.
Other data due this week includes the US Producer Price Index, weekly jobless claims, and retail sales.
Meanwhile, the United States and China have extended a tariff truce for 90 days, staving off triple-digit duties on each other's goods.
Prices remain range-bound between key support and resistance levels as investors digest recent tariff developments, said Razan Hilal, market analyst at FOREX.com.
Lower interest rates boost the appeal of gold, which yields no interest. Gold also tends to perform well during periods of uncertainty, as it is viewed as a safe-haven asset.
US gold futures for December delivery dipped 0.1 percent to $3,399.70 an ounce. Prices dropped more than 2 percent on Monday after US President Donald Trump said on social media that he would not impose tariffs on imported bullion. A report that Washington had imposed tariffs on imports of 1 kg bullion bars sent US gold futures to record highs on Friday.
Among other metals, spot silver gained 0.9 percent at $37.95 an ounce, platinum firmed 0.6 percent to $1,335.39, while palladium dropped 0.2 percent to $1,132.22.
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