By Sarah Qureshi
(Reuters) – Gold prices inched lower on Tuesday as market participants awaited tariff updates, while an inflation report showed a widely expected increase in U.S. consumer prices last month.
Spot gold fell 0.2% to $3,336.99 per ounce, by 0940 a.m. EDT (1340 GMT). U.S. gold futures were down 0.4% to $3,345.
The U.S. dollar ticked up 0.2%, making gold more expensive for holders of other currencies. [USD/]
“I think the market continues to be focused on tariffs, keeping gold underpinned. I remain bullish on gold, even though we’re well within the range that has been in place since the middle of May,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Over the weekend, U.S. President Donald Trump threatened higher tariffs, including 30% on imports from the European Union and Mexico.
On Tuesday, data showed the U.S. Consumer Price Index increased 0.3% last month, in line with expectations, after edging up 0.1% in May. That was the largest gain since January.
The Federal Reserve will likely be able to start cutting short-term borrowing costs by September, traders continued to bet after the data.
“Honestly, gold should be perkier. This seems to reinforce the view that we need a new driver to push gold back up past $3,400,” said Tai Wong, an independent metals trader.
Investors will next look to Wednesday’s U.S. Producer Price Index data for guidance.
Gold is considered a safe-haven asset during times of economic and geopolitical uncertainty. It also tends to perform well in low-interest-rate environments, as it offers no yield.
Elsewhere, spot silver slipped 0.4% to $37.98 per ounce, after hitting its highest level since September 2011 on Monday.
“My next objective on the upside for silver is at $41.61/oz. I think the market is going to view any setback as a buying opportunity,” Grant said.
Platinum rose 1.4% to $1,382.57, while palladium gained 0.6% to $1,200.50.
(Reporting by Sarah Qureshi and Ashitha Shivaprasad in Bengaluru)
