Gold prices were steady on Tuesday morning as investors awaited US inflation data due later in the week that could offer more clarity on the Federal Reserve's rate-hike plans to combat rising pricing pressures.
Spot gold was trading at $1,785.82 per ounce at 9.20am UAE time.
In the UAE, the 24K gold opened at Dh216.25 per gram on Tuesday morning, remaining unchanged from its last night’s close. While 22K, 21K and 18K were trading at Dh203.25, Dh194.0 and Dh166.25 per gram, respectively.
Investors are looking ahead to the US consumer price report for July, which will be released on Wednesday. Analysts polled by Reuters expect annual inflation to have eased to 8.7 per cent from 9.1 per cent in June.
Craig Erlam, a senior market analyst at Oanda, said gold is flat after Friday's jobs report took the wind out of its sails.
“The recovery trade was being fuelled by the belief that data-dependency meant a slower pace of tightening but that's now clearly not the case. We may see some nervy trading in the yellow metal ahead of Wednesday's inflation report although it still seems to have an eye on $1,780-$1,800 which is the next major test to the upside,” said Erlam.
Sales will pick up in the coming weeks on the eve of Diwali, which will be celebrated in October
Soaring prices have pushed annual inflation to a 40-year high, inflicting pain on American consumers and businesses, despite the drop in gasoline prices
South Asian nation's currency may breach 250 psychological barrier this month as downward trend likely to continue
All three major US stock indexes slid to levels not touched since mid-July, with the S&P 500 closing below 3,900
The substantial increase in the shares offered by the company provides investors with a highly attractive value proposition
US interest rates and higher yields increase the opportunity cost of holding non-yielding bullion while boosting the dollar