Gold prices held steady on Tuesday at $2,350.85 per ounce, as the dollar weakened and investors awaited key US inflation data that could influence the Federal Reserve's monetary policy stance, as reported by Reuters. This follows a one per cent gain in the previous session. US gold futures rose 0.8 per cent to $2,352.00. Kelvin Wong, a senior market analyst at OANDA, warns of stronger dollar if Fed hints at rate hikes. "A very strong dollar picture…could be a major risk as we could see a further corrective move in spot gold," Wong said, identifying $2,310 as a key short-term support level for this week. The focus this week shifts to Friday's release of the core PCE data, the Fed's preferred inflation gauge. This data will be crucial in determining the Fed's future rate decisions. Recent Fed meeting minutes indicated a pause in rate adjustments for now, but also discussions of potential hikes. Markets currently price in only a 62 per cent chance of a rate cut by November 2024, according to the CME FedWatch Tool. Gold is traditionally seen as a hedge against inflation, but rising interest rates reduce the appeal of holding non-interest-bearing bullion. Vietnam's central bank announced it will stop gold auctions in the domestic market and implement new measures to stabilize domestic prices. Other precious metals: * Spot silver rose 0.2 per cent to $31.73 per ounce. * Platinum gained 0.4 per cent to $1,058.50 per ounce. * Palladium climbed 0.2 per cent to $991.18 per ounce.
