Gold up on lower yields, dollar; focus on U.S. inflation data

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.