Gold prices were little changed on Tuesday, but maintained their recent gains as investors waited for more signs that US inflation was moving away from the highs seen this year, 0.2% at $1,736.35 per ounce at 19:48 ET (2348 GMT). Both instruments have risen over the past three sessions as the dollar retreated from a 20-year high last week. The dollar continued to fall on Tuesday, with the dollar index down 0.1 for five straight days of losses.
A combination of profit-taking and anticipation of data showing a further decline in US inflation weighed on the greenback in recent sessions. inflation is expected to ease to an annual rate of 8.1% in August, compared to 8.5% in the previous month.
The reading marks the second straight month of decline since a 40-year high in June and suggests US inflationary pressures are easing over the year as inflation remains well above the central bank’s annual target of 2%. at 75 basis points, upper bound of expectations next week.
This is widely expected to boost dollar and treasury yields and keep gold prices low in the near term.
Gold has tumbled from the highs it hit earlier this year as investors sought better yields from the dollar and government bonds amid rising interest rates.
A strike at the Chilean Escondida mine. Copper futures traded in London were up 0.2% to $3.6242 a pound.Up 1.9% on Monday.
Unionized workers at Escondida, the world’s largest copper mine, have voted to go on strike starting this week. Addressing low demand in China, the largest importer of the red metal.