Gold prices steady as dollar weakens ahead of key US inflation figures

Spot gold traded almost flat on Tuesday, slipping 0.06% to $4,426.91 an ounce at 10:45 am PST, according to Mettis Global. A softer greenback, with the dollar index off 0.4%, made the metal less expensive for holders of other currencies. Investors now look to inflation readings that may shape the Fed's upcoming rate call.

Gold had weakened over the previous two sessions after August hiring figures were strong and the unemployment rate held at 4.1%. Both the producer and consumer price readings, due Thursday and Friday, may guide the Fed's view, CNBC reported. CME FedWatch pricing shows traders see a 60% chance of a policy move when the Fed meets next week, and higher borrowing costs typically weigh on gold, which pays no interest.

Geopolitics also weighed on sentiment after Iran warned of economic conflict aimed at America and claimed it had fired an advanced missile at American warships. The claim came only days after an earlier round of attacks involving both countries. Silver gained 1%, trading at $66.78 per ounce, while platinum put on 0.4% to $1,834.00 and palladium was 1% higher at $1,402.87.