Investing.com-- Gold prices rose to a near three-week high on Tuesday, tracking some weakness in the dollar and Treasury yields as markets awaited a slew of key U.S. economic readings due later this week.
The greenback came off a near three-month peak this week amid some profit taking, while benchmark U.S. Treasury yields also eased off over 20-year highs.
Gold saw some safe haven bids as investors grew uncertain over how U.S. data releases will play out this week, given that they are likely to influence the path of interest rates.
This helped the yellow metal recover further from recent five-month lows, while spot prices also pushed further above the key $1,900 an ounce level.
Spot gold rose 0.3% to $1,925.51 an ounce, while gold futures expiring in December rose 0.3% to $1,953.25 an ounce by 00:05 ET (04:05 GMT).
Markets were now focused squarely on a barrage of U.S. economic readings this week, starting with consumer confidence data due later in the day.
A revised reading on second-quarter gross domestic product is due on Wednesday, while readings on personal consumption expenditures — the Federal Reserve’s preferred inflation gauge- are due on Thursday.
Nonfarm payrolls data for August is set to close out the week on Friday.
Any signs of economic resilience, particularly in inflation and the labor market, gives the Fed more impetus and headroom to keep raising interest rates- a scenario that is expected to weigh on gold.
The outlook for the yellow metal also remains uncertain, given that U.S. rates are set to remain higher for longer- a trend that was recently reiterated by Fed Chair Jerome Powell.
While investors broadly expect the Fed to keep rates on hold in September, they have also scaled back any bets on an
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