Gold drops as investors await inflation data

Gold dipped on Tuesday trade in Asia, lurking near below the $1,900 mark as investors await more hints later in the week to gauge inflationary pressure.

Gold futures dropped 0.03% to $1,898.30 by 12:12 PM ET. The dollar, which usually moves inversely to gold, advanced but remained below the three-week high of 90.627 hit during the previous week. The benchmark 10-year U.S. Treasury yield remained near a more than one-week low.

Investors anticipate the U.S. consumer price index report, which will be released on Friday. The data could indicate the Federal Reserve’s next policy move. The Fed will hold its next meeting to announce its policy decision next week.

Before the Fed’s policy decision release, the European Central Bank is set to implement its own policy decision on Thursday. Both central banks’ policy decisions will be scrutinized for any hints of asset tapering.

In other precious metals, silver, palladium, and platinum all gained 0.1%.