Gold edged lower on Tuesday, August 11, after earlier hitting its highest level in more than two months, as investors awaited US inflation data for clues about the path of interest rates.
Spot gold fell 0.3% to $4,374.82 an ounce by 05:48 GMT, after hitting its highest level since June 5 at $4,434.84 earlier in the session.
In contrast, US gold futures rose 0.4% to $4,435.
Inflation data under the microscope
US consumer price data due on Wednesday and producer price data due on Thursday are likely to influence expectations for US monetary policy.
This comes after weak US jobs data for July, released last week, led to a decline in market expectations regarding monetary policy tightening by the Federal Reserve at its next meeting.
The Federal Reserve had kept interest rates unchanged at its meeting in July, amid opposition from three officials who favored raising them.
Gold prices usually benefit from low interest rates, as the precious metal does not generate a return.
Geopolitical tensions
On the geopolitical front, US President Donald Trump responded to Iran’s conditions for reaching an agreement, demanding that Tehran pay compensation for those killed in wars, attacks, and protests.
The escalating rhetoric is likely to further complicate efforts to reopen the Strait of Hormuz.
Other precious metals
Silver fell 1.7% to $64.64 an ounce in spot trading, while platinum dropped 0.4% to $1,745.68 and palladium declined 0.8% to $1,372.44.
