Gold prices kept to a tight range on Tuesday, remaining under pressure from the dollar as investors hunkered down before inflation data that is widely expected to factor into the Federal Reserve’s plans for interest rates.
The yellow metal had fallen back into a $2,000 to $2,050 an ounce trade range over the past week, as traders began steadily phasing out expectations of early interest rate cuts by the Fed.
A slew of Fed speakers also warned last week that the bank was in no hurry to cut interest rates early, amid fears of sticky inflation. This saw the dollar shoot up to three-month highs, which weighed on gold.
The greenback edged higher in Asian trade.
Spot gold steadied at $2,020.06 an ounce, while gold futures expiring in April were flat at $2,033.45 an ounce by 00:33 ET (05:33 GMT).
CPI data awaited for more Fed, rate cut cues
Data due later on Tuesday is expected to show consumer price index (CPI) inflation eased in January. But the reading is also expected to remain well above the Fed’s 2% annual target, giving the central bank little cause to begin cutting interest rates early.