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Gold prices on Tuesday traded near a five-month high scaled last week, supported by a softer dollar and growing inflationary pressures, while investors awaited key U.S. data that will provide a clearer picture on the global economy’s recovery path.
Spot gold was steady at $1,907.54 per ounce by 0048 GMT. Last week, gold prices hit their highest since Jan. 8 at$1,912.50. U.S. gold futures edged 0.3% higher to $1,910.60 per ounce.
The dollar index was down 0.3% against its rivals, making gold less expensive for other currency holders. The U.S. unit registered its second consecutive monthly loss.
Last week, data showed U.S. consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve‘s 2% target and posting its largest annual gain since 1992.
Gold, often used as a hedge against inflation, has benefited from recent data showing a rise in prices in the United States and Britain.
Factory activity in Japan expanded at a slower pace in May as growth in output and new orders eased, and though external demand remains strong worries are growing that domestic coronavirus emergency curbs could derail the economic recovery.
Market participants’ focus this week will be on U.S. payrolls data on Friday, with median forecasts suggesting they will show an increase of 650,000.
Palladium rose 0.5% to $2,844.19 per ounce, silver eased 0.1% to $28.03, and platinum gained 0.2% to $1,188.38.