WASHINGTON (dpa-AFX) - Gold prices climbed higher on Tuesday, lifting the most active futures contract to a near three-week closing high.
A weak dollar and lower Treasury yields contributed to the bullion's uptick.
The dollar index, which dropped to 101.67, recovered to 101.97 around late morning, but retreated again and slid to 101.71.
The dollar fell, weighed down by comments from several Fed officials that higher interest rates are needed to reach the 2% inflation target, but the end to the current monetary policy tightening cycle is getting close.
Gold futures for August ended higher by $6.10 or about 0.3% at $1,937.10 an ounce, the highest close since June 21.
Silver futures for September ended down $0.064 at $23.281 an ounce, while Copper futures for September settled at $3.7660 per pound, down $0.0185 from the previous close.
Following last week's mixed monthly jobs report, traders now await U.S. consumer and producer price inflation data this week for additional clarity on the rate outlook.
The annual rate of growth by core consumer prices, which exclude food and energy prices, is expected to slow to 5% from 5.3%.
Ahead of the inflation data, CME Group's FedWatch Tool is indicating a 92.4% chance of another quarter point rate hike at the next Fed meeting later this month.
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