Gold experienced a slight increase on Tuesday as market participants anticipated the forthcoming U.S. inflation data, which may provide further insights into the trajectory of the Federal Reserve’s interest rate policy.

Spot gold increased by 0.1% to $3,348.35 per ounce, as of 0101 GMT. U.S. gold futures remained unchanged at $3,357.30. Attention among traders is now directed towards the U.S. consumer price data for June, which is scheduled for release at 1230 GMT on Tuesday. According to a survey conducted by Reuters, economists anticipate that headline inflation will rise to 2.7% on a year-over-year basis, an increase from the previous month’s rate of 2.4%. Core inflation is projected to increase to 3.0%, up from 2.8%.

On Monday, U.S. President Donald Trump reiterated his criticisms of Fed Chair Jerome Powell, asserting that interest rates ought to be set at 1% or below. Powell has indicated that he anticipates inflation will rise this summer due to tariffs, which is expected to maintain the U.S. central bank’s current stance until later this year. On Saturday, Trump indicated the possibility of implementing a 30% tariff on imports from Mexico and the European Union, effective August 1, following unsuccessful negotiations with these significant U.S. trading partners aimed at achieving a comprehensive trade agreement.

Market expectations indicate a 50 basis point reduction in interest rates by the end of the year, with the initial cut anticipated in September. Gold, frequently regarded as a refuge asset amid economic uncertainties, typically performs favorably in a low-interest-rate context. On Monday, Fed Bank of Cleveland President Beth Hammack indicated that there is no immediate necessity to reduce rates, as inflation remains elevated.

Spot silver increased by 0.1% to $38.15 per ounce, following its peak level since September 2011 reached on Monday. Platinum experienced a slight decline of 0.1%, settling at $1,362.55, while palladium saw a more pronounced decrease of 1%, now priced at $1,182.25.