Gold stabilizes as investors await the US inflation reading

Gold prices stabilized on Tuesday as investors awaited a US inflation reading that could update views on interest rates after the Federal Reserve kept the door open to further tightening monetary policy.

gold settled in spot transactions at $1,922.30 per ounce, while US gold futures fell 0.1 percent to $1,946.10.

Market activity is likely to be largely dull until the release of US CPI data on Wednesday, which could provide clues on US interest rates.

“We suspect that the CPI reading, if it comes in the same direction or even slightly higher, will put some short-term pressure on gold,” said Nicholas Vrabel of ABC Refinery.

Limiting gold’s gains, the US dollar index recovered some of its losses ahead of the CPI data.

As for other precious metals, silver rose 0.4 percent to $23.16, platinum increased 0.3 percent to $901.02, and palladium advanced 0.3 percent to $1,221.83.