Gold prices rose in early trading on Tuesday, despite investors taking a cautious approach ahead of important US inflation data that could provide further clues about the path of Federal Reserve policy.
Update prices
Spot gold was up 0.1 percent at $2,353 an ounce by 0320 GMT, after rising 1 percent in the previous session.
U.S. gold futures rose 0.8 percent to $2,354.
Investors are awaiting the US core personal consumption expenditures price index report for April, due on Friday, which is the Federal Reserve's preferred measure of inflation.
Traders are increasingly betting that the U.S. central bank will cut interest rates more than once in 2024, with traders currently seeing about a 63 percent chance of a rate cut by November, according to CME's FedWatch service.
Gold is known as a hedge against inflation, but higher interest rates increase the opportunity cost of holding non-yielding gold.
Among other precious metals, spot silver rose 0.4 percent to $31.81 an ounce, platinum rose 0.2 percent to $1,056.15 and palladium gained 0.4 percent to $992.50 an ounce.
