Gold Edges Higher Ahead Of US Inflation Data

Gold prices edged higher on Tuesday despite a firmer dollar and mounting pressure from higher U.S. Treasury yields.

Spot gold edged up 0.2 percent to $1,957.26 per ounce, while U.S. gold futures were up 0.4 percent at $1,955.

The dollar edged higher and bond yields rose ahead of U.S. consumer inflation data that is expected to show consumer prices gained the most in four decades.

Reports on U.S. producer price inflation, retail sales and industrial production due later in the week may also impact expectations regarding how aggressively the Federal Reserve plans to tighten monetary policy.

Investors also looked ahead to the ECB meeting after minutes from the March meeting turned out to be hawkish.

German consumer price index rose 7.3 percent year-on-year, after a 5.1 percent increase in February, final data from Destatis showed earlier today.

This was the biggest rate since German reunification and also matched the preliminary estimate published on March 30.