Gold prices inched lower on Tuesday as a rebound in dollar dented the metal’s appeal, while investors awaited U.S. consumer price data to measure whether inflationary pressure was building.
Spot gold was down 0.1% at $1,833.00 per ounce by 0721 GMT, after hitting its highest since Feb. 11 at $1,845.06 on Monday.
“Although gold extended higher earlier today, it’s struggling to continue building momentum and part of that is concern about inflation … it isn’t a given that those job numbers mean that the Fed won’t act,” DailyFX currency strategist Ilya Spivak said.
There is significant resistance for gold within the $1,855-$1,875 zone, while support is around the $1,800 level, Spivak said.
Making gold more expensive for holders of other currencies, the dollar index was up 0.2% after hitting a more than two-month low in the previous session following U.S. non-farm payrolls data on Friday that showed jobs growth unexpectedly slowed in April. [USD/]