BENGALURU: Gold prices rose on Tuesday as the dollar softened, while investors awaited a key US inflation report and speeches from Federal Reserve officials for cues into the central bank’s potential rate-cut timings.

Spot gold was up 0.4% at $2,038.19 per ounce, as of 0840 GMT. US gold futures rose 0.5% to $2,047.90 per ounce. The dollar traded weaker, making greenback-priced bullion relatively less expensive for other currency holders.

“Ahead of inflation number we expect some kind of consolidation. We expect gold to trade in a very narrow range ... bias will be ‘sell’ on jump,” said Ajay Kedia, director at Kedia Commodities in Mumbai. The support for gold follows Japan and the UK entering into a technical recession, a trend reflected in the gold-silver ratio, which is currently at 90, Kedia said. “But, there is no change in war premium, everything has been already priced in.”

Recent remarks from Fed policymakers suggested that the US central bank was in no hurry to cut interest rates, largely cementing bets against any rate cuts before June.

Markets are currently pricing in about 81 basis points of rate cuts for 2024, with a 64% chance of the first quarter-point cut occurring in June, according to LSEG’s interest rate probability app, IRPR.