Gold ticks up as oil eases; spotlight on US inflation data

Spot gold prices rose on Tuesday as oil prices declined, with traders focusing on forthcoming U.S. inflation data. Spot gold increased by 0.4 percent to $4,188.27 per ounce, while U.S. gold futures for December delivery rose 0.5 percent to $4,212.50 per ounce. Oil prices were on track for their first weekly decline, driven by Middle East tensions that have raised inflation concerns and favored restrictive monetary policy.

Higher rates tend to push investors toward assets that pay yields, rather than non-yielding metals like gold. The U.S. Consumer Price Index (CPI) report is scheduled for Wednesday, and the Producer Price Index (PPI) report for Thursday. Analysts believe that if inflation data exceeds expectations, particularly on core measures, it could lead to another dip in gold prices.

Currently, traders view a 19 percent chance of a Fed rate hike this month, but anticipate an 85 percent probability of an increase in December. Fed officials, like Cleveland Fed President Beth Hammack, argue that the central bank should adopt a more restrictive monetary policy stance quickly to control inflation, which they see as becoming broader-based and influencing firms' pricing strategies.

In other metal markets, spot silver gained 0.2 percent to $60.46 per ounce, platinum rose 0.5 percent to $1,694.65, and palladium fell 0.2 percent to $1,141.23 per ounce.