Dollar down 0.2 to twomonth low
Market focus on Wednesday39;s U.S. inflation data

July 11 Reuters Gold prices inched up on a weaker dollar on Tuesday, although bullion struggled for momentum as investors were wary of placing big bets ahead of U.S. inflation data that could influence the Federal Reserve39;s policy trajectory.

Spot gold rose 0.2 to 1,928.99 per ounce by 0531 GMT. U.S. gold futures were also up 0.2 at 1,934.60.

Bullion is being supported by a weaker dollar as the Fed seems to imply that they39;re at the end of the tightening cycle, but gold bugs appear hesitant to overcommit ahead of Wednesday39;s U.S. inflation report, said Matt Simpson, senior market analyst at City Index.

The dollar was near a twomonth low on prospects of lower rates. A weaker dollar makes gold cheaper for holders of foreign currencies.

Several U.S. central bank officials on Monday said the Fed will likely need to raise interest rates further to bring down inflation, but the end to its current monetary policy tightening cycle is getting close.

Investors see a 95 chance that the central bank would raise rates in its July meeting into the 5.255.5 range, keeping them there until rate cuts could be seen in 2024, as per CME39;s Fedwatch tool.

Higher rates dampen the appeal of bullion, which pays no interest.

The focus this week will be on the U.S. CPI Consumer Price Index data due on Wednesday, with core CPI in June expected to have risen 0.3 monthonmonth, as per a Reuters poll….