Gold prices rose in early trading on Tuesday, after a sharp decline in the previous session, as investors awaited testimony from Federal Reserve Chairman Jerome Powell before Congress and inflation data for June to gauge the U.S. central bank's next move.
Update prices
Spot gold rose 0.1 percent to $2,361.77 per ounce by 0208 GMT, after falling more than 1 percent on Monday. U.S. gold futures rose 0.3 percent to $2,369.70.
Powell is scheduled to testify before Congress over two days, beginning later Tuesday in the Senate before heading to the House of Representatives on Wednesday.
Markets are pricing in a 77 percent chance of a rate cut in September and another by December, according to CME Group's FedWatch service.
Demand for non-yielding gold increases as interest rates fall.
Market participants are also awaiting the consumer price index and producer price index data for June, scheduled for release on Thursday and Friday, respectively.
Among other precious metals, spot silver rose 0.2 percent to $30.84 an ounce, platinum rose 0.9 percent to $1,005.25, and palladium gained 0.1 percent to $1,009.93 an ounce.
