By Ashitha Shivaprasad
(Reuters) – Gold prices edged lower on Tuesday as traders digested tariff developments and awaited a series of economic data, while a key inflation report kept expectations for U.S. rate cuts intact.
Spot gold was down 0.3% at $3,333.68 an ounce at 10:31 a.m. EDT (1431 GMT).
The U.S. Consumer Price Index rose 0.2% last month after gaining 0.3% in June. For the 12 months through July, the CPI advanced 2.7%. Economists polled by Reuters had forecast the CPI rising 0.2% in July and increasing 2.8% year-on-year.
“Inflation numbers appear mixed but are supportive of rate cuts,” said RJO Futures market strategist Bob Haberkorn.
“Traders remain cautious as we’re at a critical point and awaiting further economic indicators.”
Traders maintained bets on September and December U.S. rate cuts after the CPI data.
Other data due this week includes the U.S. Producer Price Index, weekly jobless claims, and retail sales.
Meanwhile, the United States and China have extended a tariff truce for 90 days, staving off triple-digit duties on each other’s goods.
“As tariff talks shift toward de-escalation and diplomatic negotiation, gold has eased slightly,” said Razan Hilal, market analyst at FOREX.com.
Lower interest rates boost the appeal of gold, which yields no interest. Gold also tends to perform well during periods of uncertainty, as it is viewed as a safe-haven asset.
U.S. gold futures for December delivery dipped 0.6% to $3,383.50 an ounce. Prices dropped more than 2% on Monday after U.S. President Donald Trump said on social media that he would not impose tariffs on imported bullion. A report that Washington had imposed tariffs on imports of 1 kg bullion bars sent U.S. gold futures to record highs on Friday.
Among other metals, spot silver was flat at $37.62 an ounce, platinum inched 0.4% lower to $1,321.65, and palladium dropped 0.5% to $1,129.62.
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by David Goodman and Rod Nickel)
