Gold slips as dollar strengthens, ounce priced at $4,164.45

Gold prices declined on Tuesday amid a stronger dollar, which put downward pressure on the precious metal. Investors were awaiting US inflation data as hints on Federal Reserve interest rate policy. Spot gold slipped 0.2% to $4,164.45 per ounce, after reaching a one-week high the day before. US gold futures for December delivery were down 0.1% to $4,187.90.

The dollar remained near its 18-month high, making dollar-priced metals more costly for holders of other currencies. Analyst Kyle Rodda from Capital.com stated that the upcoming consumer price index data would play a crucial role in determining gold's short-term direction. If inflation figures exceed expectations, particularly in the core reading, it might slightly increase the odds of a rate hike in October, which could further put downward pressure on gold.

According to CME Group's FedWatch tool, traders see a 21% chance of a US rate hike this month, whereas the probability for a hike in December stands at 88%. Among other precious metals, silver fell 0.5% to $60.01, platinum slipped 0.2% to $1,682.47, and palladium dropped 0.5% to $1,137.69.