By Ashitha Shivaprasad
(Reuters) – Gold ticked up on Tuesday but hovered near a one-month low, while investors awaited U.S. economic data and comments from Federal Reserve officials for further clarity on the interest rate trajectory.
Spot gold rose 0.2% at $2,624.17 per ounce by 0155 GMT, after hitting its lowest since Oct. 10 on Monday. U.S. gold futures rose 0.5% to $2,630.10.
The U.S. dollar held near a four-month high as investors continued to pile into trades seen as benefiting from the incoming Donald Trump administration. A stronger dollar makes bullion less attractive for other currency holders. [USD/]
“Gold has succumbed to the purple patch of the U.S. dollar in the aftermath of the election. The President-elect’s policies appear to be a boon for the dollar and potentially from an inflationary standpoint, it could slow down the Fed’s rate-cutting trajectory in 2025,” said Tim Waterer, chief market analyst at KCM Trade.
Gold is considered a hedge against inflation but higher interest rates reduce the appeal of holding the non-yielding asset.
Market focus will be on the October Consumer Price Index data on Wednesday, Producer Price Index and weekly jobless claims on Thursday, followed by retail sales and industrial production on Friday.
A throng of U.S. central bank officials are also scheduled to speak this week, including Chair Jerome Powell.
Trump’s potentially inflationary tariffs and immigration policies have reduced market odds of a December rate cut to about 65% from nearly 80% a week ago, according to CME Group’s FedWatch Tool.
“There is still a fundamental path higher for gold, though it will likely require the dollar to lose some momentum. A soft inflation report would increase the odds of a December rate cut, which may give gold a reprieve,” added Waterer.
Spot silver was little changed at $30.70 per ounce, platinum lost 0.2% to $962.80 and palladium was flat at $980.34.
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu and Rashmi AIch)
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