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Gulf Today Report
Gold prices dropped on Tuesday as investors held off ahead of US inflation data that would unravel the recovery pattern in the world’s largest economy.
Spot gold was unchanged at $1,731.69 per ounce by 03:54 GMT while US gold futures were also steady at $1,732.80 per ounce.
Stephen Innes, chief global market strategist at financial services firm Axi said, "gold is being supported by expectations of higher inflation numbers from the data later in the day."
According to data released by the Federal Reserve Bank, consumers have increased their inflation expectation in March and are more positive about the job market.
"It's hard to imagine that gold will not gain today if the data shows higher inflation, but there is a big chance of it pulling back later this week if retail sales data comes positive on Thursday," Innes said.
Gold, as an inflation hedge, becomes a more attractive investment option when central banks take a dovish stand. However, there is a "disagreement between the market and the Fed", IG Market analyst Kyle Rodda said.
Spot gold was down 0.3% at $1,734.31 per ounce by 03:45 GMT while US gold futures were also down 0.3% at $1,733.70 per ounce.
Spot gold was steady at $1,711.61 per ounce by 02:57 GMT while US gold futures dipped 0.3% to $1,710.20.
Spot gold rose 0.4% to $1,707.81 per ounce by 05:23 GMT while US gold futures climbed 0.4% to $1,704.90.
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