Gold rose slightly on Tuesday, following its drop over the previous two sessions, yet traded below $1300 an ounce, ahead of U.S. CPI and housing starts data.
The shiny metal fell yesterday while equities firmed on signs of easing tensions between Russia and Ukraine after foreign ministers of the two countries met in Berlin.
Russian Foreign Minister Sergei Lavrov mentioned that all issues related to sending the humanitarian convoy by Moscow to the eastern boarders had been resolved.
Moscow said it is looking forward to having a ceasefire to allow the humanitarian aids to reach needy people.
“Israel and Palestinian militants agreed to extend a five-day truce, and in Iraq, Kurdish and government forces retook the nation’s largest dam from Islamic rebels,” Bloomberg said.
The ease in geopolitical tensions pushed prices down below the physiological level of $1300, where investors will focus later in the day on U.S. CPI and housing starts figures for July.
Tomorrow, minutes of the Fed’s July 29-30 meeting will be available, while Janet Yellen will speak on Thursday at an annual central bankers’ conference in Jackson Hole, Wyoming.
The U.S. dollar surged for a second session versus a basket of major currencies, to hover near 11-month high. The dollar index soared to peak of 81.70 after touching a low of 81.61.
Gold is currently trading around $1299.87 after hitting a high of $1300.36 and a low of $1297.39.
Crude Oil for October’s delivery rebounded to trade around $94.31 after hitting a bottom of $93.42 the previous session.