Investing.com - Gold prices were under pressure during North American hours on Tuesday, struggled near five-week lows as investors focused on the next set of U.S. data to see whether it supports expectations that the Federal Reserve will raise interest rates soon.
The Conference Board is scheduled to release a report on U.S. consumer confidence for August at 10:00AM ET (14:00GMT). There is also S&P/Case-Shiller home price data at 9:00AM ET (13:00GMT).
Market players are also looking ahead to Friday’s nonfarm payrolls report for further hints on the timing of the next U.S. rate hike. The consensus forecast is that the data will show jobs growth of 180,000 in August, following an increase of 255,000 in the preceding month.
In an interview with Bloomberg TV earlier in the day, Fed Vice Chairman Stanley Fischer said the U.S. job market is nearly at full strength and the pace of interest rate increases by the U.S. central bank will depend on how well the economy is doing.
Fischer did not comment on the timing of the next Fed rate hike but said "we choose the pace on basis of data."
Gold for December delivery on the Comex division of the New York Mercantile Exchange dipped $4.55, or 0.34%, to trade at $1,322.55 by 8:40AM ET (12:40GMT).
A day earlier, prices fell to as low as $1,317.20, a level not seen since July 26, amid indications the Federal Reserve is gearing up to hike interest rates as early as next month.
According to Investing.com's Fed Rate Monitor Tool, investors are pricing in a 24% chance of a rate hike by September. December odds were at around 57%.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose to 95.84 early Tuesday, the most since August 12. It was last at 95.80, up 0.3%.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Also on the Comex, silver futures for September delivery slumped 3.8 cents, or 0.2%, to trade at $18.73 a troy ounce during morning hours in New York. Futures dropped to a two-month low of $18.37.