Gold falls as the dollar rises and eyes turn to inflation

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Gold fell on Tuesday as the dollar rose, while investors cautiously awaited economic data due this week to assess inflation pressures and the US Federal Reserve’s stance on monetary policy.
And gold fell in spot trading 0.1% to $ 1896.94 an ounce during trading, while gold settled in futures trading in the United States at $ 1899.10.
The dollar index rose 0.1% against its rivals, increasing the cost of gold to holders of other currencies.
“Inflation has been on the rise in recent weeks, and traders are waiting for confirmation from US data this week that price levels will continue to rise,” said Margaret Yang, an analyst at the DailyFix, referring to Thursday’s US consumer price report.
“(US data) is expected to have a mixed effect on gold,” she said. On the positive side, gold is considered a hedge against inflation so higher numbers make gold more attractive,” she said, adding that higher inflation would raise concerns about the Fed easing loose monetary policy.
In terms of other precious metals, silver fell 0.3% to $ 27.78 an ounce, and palladium gained 0.2% to $ 2838.28, while palladium fell 0.5% to $ 1167.18.
(Reuters)





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