Gold declines as investors await US inflation data

Gold prices fell in limited trading on Tuesday, as investors awaited more US economic data this week, which may shed light on the monetary policy expectations of the Federal Reserve (the US central bank).

According to Reuters, by 0535 GMT, gold in spot transactions fell 0.1% to $2,024.49 per ounce. US gold futures also fell 0.1% to $2,038.

“Things slow down at the end of the year, but the only thing to take into account will still be the outlook for Federal Reserve policy,” said Ilya Spivak, head of global macroeconomics at Tasty Live.

He added, “Expectations are very high at this stage to reduce interest rates next year.”

Federal Reserve Chairman Jerome Powell said last week that the historic tightening of monetary policy is likely to end as inflation declines faster than expected and discussions emerge about reducing borrowing costs.

Investors are awaiting a slew of US economic data this week, including the November personal consumption expenditures report scheduled for release on Friday, which is the central bank’s preferred measure of core inflation.

As for other precious metals, silver rose in spot transactions 0.3% to $23.84 per ounce, while platinum fell 0.2% to $943.39 and palladium settled at $1181.98.