Gold falls on anticipation of US inflation figures

Gold prices fell on Tuesday, swept up by a slight rise in the dollar as investors waited for inflation data in the United States to come out this week and could influence the Federal Reserve’s decision to raise interest rates.

Spot gold fell 0.3 percent to $1,669.73 an ounce at 0615 GMT. Prices reached a three-week high during the previous session, supported by a weak dollar.

US gold futures fell 0.5% to $1,672.70.
The dollar index rose 0.2 percent, making the precious metal more expensive for buyers abroad.
The US consumer price index is expected to be released on Thursday.

Gold is considered a hedge against inflation, but higher interest rates reduce the attractiveness of the non-performing metal.

Investors are also focused on the US midterm congressional elections set to take place later Tuesday, which will determine which party will dominate Congress and which could fuel moves across the markets.

As for other precious metals, silver in spot transactions fell one percent to $20.56. Platinum fell 0.4 percent to $975.19 and palladium fell 0.5 percent to $1,887.17.

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