Gold firmed on Tuesday after a pullback in the U.S. dollar and Treasury yields, while traders positioned for remarks from several Federal Reserve officials this week to gauge the likely pace of interest rate cuts this year.
Spot gold rose 0.6% to $2,035.89 per ounce, as of 01:45 p.m. ET (1845 GMT), after hitting its lowest since Jan. 25 in the previous session.
U.S. gold futures settled 0.4% higher at $2051.4.
Propping up zero-yield bullion, the dollar (.DXY), opens new tab was down 0.3% and benchmark U.S. 10-year Treasury yields also eased.
Fed speakers are expected to reiterate that while March might be too early for a rate cut, they just need more of the same on the inflation front in order to start their cutting cycle, said Daniel Ghali, commodity strategist at TD Securities.
“We’re expecting gold prices to firm on the horizon with next week’s CPI data release potentially being the catalyst. We expect a soft print on inflation and gold to respond quite positively,” he added.
