Gold prices increased slightly on Tuesday as the U.S. dollar weakened, with attention directed toward forthcoming inflation data that may influence expectations regarding the Federal Reserve’s subsequent policy decision. Spot gold experienced an increase of 0.3%, reaching $4,418.79 per ounce, as of 0048. U.S. gold futures for December delivery experienced a decline of 0.3%, settling at $4,464.80. The U.S. dollar index slipped 0.3%, rendering greenback-priced metals more accessible for holders of other currencies. The U.S. producer price index data is set to be released on Thursday, followed by the consumer price index data on Friday.

Gold prices declined on September 4 following the release of data indicating a significant acceleration in U.S. job growth for August, with the unemployment rate remaining unchanged at 4.1%. According to the CME FedWatch Tool, traders currently assign a 60% probability to a rate hike at the Fed’s policy meeting next week. Despite its reputation as a hedge against inflation, high interest rates generally diminish the attractiveness of non-yielding gold. Deutsche Bank anticipates that the European Central Bank will implement a 25 basis point increase in interest rates in December, following a hike in September, as ongoing energy risks continue to exert pressure on the inflation outlook.

On the geopolitical front, Iran issued a warning of potential retaliation against any new U.S. attacks on its assets, indicating that energy infrastructure throughout the Gulf, including U.S. oil and gas interests, remains susceptible. Among other metals, spot silver increased by 0.3% to $66.34 per ounce, platinum advanced by 0.6% to $1,836.97, and palladium ascended by 0.9% to $1,401.47.