By Ashitha Shivaprasad and Sarah Qureshi
(Reuters) – Gold prices gained 1% on Tuesday amid a weaker dollar and economic slowdown worries due to tariff wars, while investors strapped in for inflation data that could shed light on the future path of U.S. interest rates.
Spot gold was 1% firmer at $2,919.29 an ounce as of 11:09 a.m. ET (1509 GMT). U.S. gold futures were 0.9% higher at $2,926.30.
The U.S. dollar index hit its lowest level since early November. A softer dollar makes greenback priced-bullion more affordable for other currency holders. [USD/]
“Gold is likely to remain supported amid ongoing market uncertainties, bolstering demand for the safe-haven asset. However, any positive developments in Russia-Ukraine negotiations could reduce risk premiums,” said Zain Vawda, market analyst at MarketPulse by OANDA.
The tariff policies implemented by U.S. President Donald Trump against key trading partners have caused significant volatility in global markets and heightened concerns about economic growth.
Bullion is considered a hedge against uncertainties and tends to thrive in a low-interest environment since it is a non-yielding asset.
Market attention will be on Wednesday’s U.S. Consumer Price Index and Thursday’s Producer Price Index. According to a Reuters poll, February’s CPI is expected to have climbed 0.3%.
Traders are currently expecting the Federal Reserve to cut interest rates in June. [FEDWATCH]
“The gold price is already trading at a very high level due to the sharp rise since the start of the year, which limits the upside potential,” Commerzbank said in a note.
Spot silver added 2.2% to $32.82 per ounce. Platinum was up 1.9% at $975.95 and palladium gained 0.2% to $944.25.
(Reporting by Ashitha Shivaprasad and Sarah Qureshi in Bengaluru, additional reporting by Ishaan Arora; editing by Ed Osmond and Christina Fincher)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibility for its content.