Gold eases on firm dollar; spotlight on US inflation data

Business Recorder reported that spot gold slipped 0.2% to $4,164.45 an ounce by 0201 GMT on Tuesday, retreating from a one-week high set the previous day. The softer move came as the greenback held firm near an 18-month high, which lifted the cost of dollar-priced metals for buyers using other currencies. December gold futures on the US market dipped 0.1% to $4,187.90.

Attention now turns to US inflation figures, with the Consumer Price Index due on Wednesday and the Producer Price Index report scheduled for Thursday. Kyle Rodda said the CPI release will be pivotal for gold in the short term, warning that a hotter-than-expected core reading could push bets on an October rate increase higher and weigh on the metal. Futures pricing, based on CME's FedWatch tool, showed a 21% chance of a Fed hike this month and an 88% chance of a December increase.

Cleveland Fed President Beth Hammack called for the central bank to tighten policy relatively quickly, saying inflation had become broader-based. Elsewhere, spot silver fell 0.5% to $60.01, platinum eased 0.2% to $1,682.47 and palladium dropped 0.5% to $1,137.69. Saudi Arabia also reported fresh incoming fire and said Riyadh airport would stay closed for now, following a deadly missile strike on a departure terminal on Saturday.