Mumbai, 26 Mar (Commoditiescontrol): Gold prices edged up on Tuesday, led by a softer dollar as investor focus turns to U.S. inflation data due later this week, which could shed more light on the timing of the Federal Reserve's first interest rate cut this year.
Spot gold was up 0.1% at $2,172.82 per ounce. U.S. gold futures edged 0.1% lower to $2,173.70 per ounce.
The dollar index slipped 0.3% against its rivals, making gold less expensive for other currency holders.
Gold prices hit a record high last week after Fed policymakers indicated they still expected to reduce interest by three-quarters of a percentage point by 2024 end despite recent high inflation readings.
Chicago Fed Bank President Austan Goolsbee said on Monday that at the Fed's policy meeting last week he penciled in three rate cuts for this year.
Meanwhile, Fed Governor Lisa Cook cautioned the U.S. central bank needs to proceed carefully as it decides when to begin cutting interest rates.
Investors now look forward to U.S. core personal consumption expenditure price index data due on Friday. PCE price index is seen rising 0.3% in February, which would keep the annual pace at 2.8%.
Traders are pricing in a 70% probability that the Fed will begin cutting rates in June, according to the CME Group's FedWatch Tool. Lower interest rates reduces the opportunity cost of holding bullion.
Spot silver was flat at $24.68 per ounce, platinum rose 0.4% to $906.10 and palladium gained 0.4% to $1,009.14.
(By Commoditiescontrol Bureau: 09820130172)
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