IGI Logo

Gold prices were flat during early Asian hours on Tuesday as the dollar regained some footing, with investors awaiting U.S. inflation numbers due this week for clarity on whether more rate hikes are on the table.

FUNDAMENTALS

* Spot gold held its ground at $1,935.39 per ounce by 0058 GMT, while U.S. gold futures were also steady at $1,970.

* The dollar strengthened 0.2% against major currencies, making bullion more expensive for other currency holders. [USD/]

* The contours of the debate at the heart of the Federal Reserve's policy decision next month came into clearer view on Monday as officials outlined the case for and against another interest rate hike.

* Additional interest rate hikes will likely be needed in order to lower inflation to the U.S. Federal Reserve's 2% target, Fed Governor Michelle Bowman said on Monday.

* Rate hikes tend to lift bond yields, raising the opportunity cost of holding zero-yield bullion.

* Investors are awaiting the U.S. consumer price index data on Thursday for cues on Fed's monetary policy path.

* A key market gauge of long-term euro area inflation expectations hit its highest level in more than a decade on Monday, as investors expect future consumer price increases to run significantly above their pre-COVID averages.

* Turkey's Treasury is planning to impose a quota on the imports of unprocessed gold in order to reduce the negative impact of such imports on the current account balance, a source familiar with the matter told Reuters.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.3% on Monday. [GOL/ETF]

* Spot silver prices fell 0.2% to $23.09 and platinum eased 0.3% to $917.06. Palladium was up 0.1% at $1,241.02.

DATA/EVENTS (GMT)

0300 China Trade Balance USD July

0600 Germanay HICP Final YY July

1230 US International Trade June