Gold nudged higher on Tuesday as the US dollar slipped, with investors focused on upcoming inflation data that could shape expectations for the Federal Reserve's next policy move. Spot gold was up 0.1% at $4,407.27 per ounce, as of 0645 GMT. US gold futures for December delivery fell 0.6% at $4,452.10, Reuters reported. The US dollar index ticked 0.3% lower, making greenback-priced metals more affordable for other currency holders. "Gold remains locked in a battle between buyers and sellers, with neither party showing enough conviction to drive a sustained and persistent directional move," said Chris Weston, head of research at Pepperstone Group. The US producer price index data is due on Thursday and the consumer price index report is scheduled for Friday. Spot gold fell in the previous two sessions after data showed US job growth accelerated sharply in August, while the unemployment rate held steady at 4.1%, suggesting an improvement in the labor market. Traders see a 58.4% chance of a rate hike at the Fed's policy meeting next week, according to the CME FedWatch Tool. Elevated rates tend to reduce the appeal of non-yielding gold. "We don’t see gold falling back too much if and when the central bank does raise rates. More important than the rate move is the notion that markets are somewhat uneasy about what the Fed and the Treasury are signaling," Marex analyst Edward Meir said in a monthly note. On the geopolitical front, Iran threatened the United States with "economic warfare" and said it had fired an advanced missile at US warships, underscoring the risks of further escalation only days after both sides traded blows again. Among other metals, spot silver gained 0.1% to $66.21 per ounce, platinum fell 0.1% to $1,824.58 and palladium lost 0.2% to $1,385.50. Analysts at BMI cut their 2026 platinum price forecast to $1,900 per ounce from $2,000, and lowered their palladium forecast to $1,400 per ounce from $1,500, citing weaker automotive demand and a recovery in supply.
