Gold prices inched up on Tuesday as a weaker dollar and a pullback in Treasury yields boosted the metal’s appeal, while investors awaited U.S. consumer price data to measure whether inflationary pressure was building.
Spot gold was up 0.1% at $1,836.95 per ounce by 0538 GMT, after hitting its highest since Feb. 11 at $1,845.06 on Monday.
U.S. gold futures were little changed at $1,837.30 per ounce.
“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 area, while support is around the $1,800 level, Spivak said.
Benchmark U.S. 10-year Treasury yields were pinned below 1.6%, reducing the opportunity cost of holding non-yielding gold. [US/]
Making gold less expensive for other currency holders, the dollar index hovered close to a more than two-month low hit in the previous session after U.S. non-farm payrolls data on Friday showed jobs growth unexpectedly slowed in April. [USD/]