Investing.com - Gold prices rose on Tuesday, as caution ahead of this week's U.S. inflation data weighed on demand for the dollar.
Comex gold futures were up 0.31% at $1,330.5 a troy ounce by 08:00 a.m. ET (12:00 GMT), the highest since February 7.
Market participants were eyeing this week's U.S. consumer price inflation data due on Wednesday and producer price inflation data on Thursday for further clues on how fast the Federal Reserve will raise interest rates this year.
The greenback also suffered from a rebound in U.S. equity markets on Monday. Markets were especially boosted by news of a $2 billion infrastructure plan by the Trump administration.
The plan is part of the two-year budget agreement passed by the U.S. Congress last Friday, ending a brief government shutdown.
The agreement is set to boost federal spending by almost $300 billion and suspend the debt ceiling for a year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.41% at 89.64.
Gold is sensitive to moves in both U.S. rates and the dollar. A weaker dollar makes gold less expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Elsewhere on the Comex, silver futures were down 0.12% at $16.55 a troy ounce.
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