WASHINGTON (dpa-AFX) - Gold prices traded near one-month lows on Tuesday as investors awaited key U.S. inflation data and the outcome of the Federal Reserve's policy meeting for directional cues.
Spot gold slipped 0.2 percent to $2,305.76 per ounce while U.S. gold futures were down 0.2 percent at $2,322.30.
Focus remains firmly on Wednesday's U.S. consumer price data and the Federal Reserve interest-rate decision.
The Fed is widely expected to leave interest rates unchanged, but traders will pay closer attention to Fed officials' updated projections for the economy and rates.
Market participants see diminished prospects for easing this year, with many analysts expecting the first rate cut by the Federal Reserve only in November.
Ahead of the Fed announcement, the Labour Department is scheduled to release its report on consumer price inflation for May.
Economists currently expect consumer prices to inch up by 0.1 percent after an increase of 0.3 percent in April.
Core consumer prices, which exclude food and energy prices, are expected to increase by 0.3 percent for the second straight month.
The annual rate of growth by consumer prices is expected to come in unchanged at 3.4 percent, but the annual rate of core consumer price growth is expected to slow to 3.5 percent in May from 3.6 percent in April.
Reports on producer prices, import and export prices and consumer sentiment and inflation expectations may also attract attention later in the week.
Elsewhere in Europe, Eurozone interest rates are likely to remain unchanged for some time as the European Central Bank President Christine Lagarde said restrictive policy has not ended and the bank may wait several meetings before easing rates again.
Interest rates may not follow a linear downward path, Lagarde said in Paris in a joint interview to several European newspapers including Les Echos, Expansion, Il Sole 24 Ore and Handelsblatt.
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