Gold Prices Rebound as U.S. Dollar Turns Lower

Investing.com – Gold prices rebounded on Tuesday, as data showing that U.S. consumer prices cooled in February sent the greenback lower and dampened expectations for aggressive rate hikes by the Federal Reserve.

Comex were up 0.36% at $1,325.6 a troy ounce by 09:00 a.m. ET (13:00 GMT).

The dollar weakened after data showed that , confirming that an anticipated pickup in inflation will probably be only gradual.

The report came after data on Friday showing a dampened concerns over inflationary pressures and dampened expectations for four rate hikes by the Federal Reserve this year.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.13% at 89.77.

Gold is sensitive to moves in both U.S. rates and the dollar. A weaker dollar makes gold less expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.

Elsewhere on the Comex, gained 0.45% to $16.60 a troy ounce.

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