Market sees 72 chance of Fed rate hike in May
U.S. dollar near sessionlows
Focus on U.S. CPI data, Fed March minutes on Wednesday

April 11 Reuters Gold climbed back up above the key 2,000 level on Tuesday as the dollar came off last session39;s peak, while traders hunkered down for Wednesday39;s U.S. inflation data for cues on future interest rate hikes.

Spot gold was up 0.6 to 2,001.79 per ounce by 1001 a.m. EDT 1401 GMT while U.S. gold futures gained 0.7 to 2,017.30.

Bullion found some respite from a pause in the dollar, following a bounce in the previous session, also helping offset pressure from higher Treasury yields.

At this stage of the game, the market isn39;t particularly fussed on whether we get another 25 basis points from the Federal Reserve in May, said Bart Melek, head of commodity strategies at TD Securities.

The market is looking at the pivot and signalling lower rates as we move deeper into the secondhalf of 2023.

The prospect of the Fed raising its benchmark rate only once more by 25 basis points is a useful starting point but its policy path will depend on incoming data, said New York Fed President John Williams.

Gold shed nearly 1 on Monday after data on Friday indicated a strong pace of U.S. job hiring, raising the chances that the Fed will increase rates in May to around 72.

Wednesday39;s U.S. inflation report could yield signs on how long the Fed may continue its campaign against rising prices. Traders will also look for cues from a…