Gold holds firm as investors look to inflation data

Gold holds firm as investors look to inflation data

Gold prices moved up on Tuesday as the US dollar and Treasury yields lacked momentum, while investors await key inflation reading and comments from Federal Reserve officials this week.

Spot gold firmed 0.3% at $2,035.92 per ounce as of 9:35 a.m. ET (1435 GMT). US gold futures rose 0.3% to $2,044.10 per ounce.

The dollar index was subdued and benchmark 10-year Treasury yield slipped, making bullion more attractive for overseas buyers. [US/] [USD/]

"A slight uptick in inflation data will pressure the gold market but it is well supported at the $2,000 level by central bank buying. It is unlikely Fed officials will change their stance until more data," said Phillip Streible, chief market strategist at Blue Line Futures, in Chicago.

"Gold will have a record run in the fourth quarter when rate cuts materialise."

At least 10 Fed officials are due to speak this week, while the core personal consumption expenditures price index, the Fed's preferred inflation gauge, is due on Thursday.

Recent comments from Fed policymakers suggested that the US central bank is in no rush to cut rates.

Prices are also supported as China's middle-class attempts "to preserve their dwindling fortunes caused by the property market crisis and a prolonged stock market sell-off", Ole Hansen, Saxo Bank's head of commodity strategy, wrote in a note.

China's net gold imports via Hong Kong in January hit the highest since mid-2018, official data showed.

Spot platinum climbed 1.4% to $892.05 per ounce, but was down more than 9% so far this year. Palladium rose 1.1% to $961.51 and was down 12% for the year.

"The low price level of platinum and palladium is already leaving its mark on producers of platinum group metals who are likely to reduce their production in response. This should help to stabilize prices," Commerzbank wrote in a note.

Silver rose 0.6% to $22.65.