Investing.com - Gold prices drifted higher in Asia on Tuesday with China prices data ahead.
Gold for June delivery on the Comex division of the New York Mercantile Exchange eased 0.11% to $1,265.15 a troy ounce.
Silver futures for July delivery on the Comex dropped 0.40% to $17.020 a troy ounce, while copper futures edged up 0.05% to $2.102 a pound.
Ahead in China, CPI for April is seen down 0.2% month-on-month and at a 2.4% pace year-on-year. PPI for April year-on-year is expected down 3.8%.
China will also publish reports on industrial production, fixed asset investment and retail sales late on Friday.
The data is seen for monetary and fiscal policies in the country, which is the world’s largest copper consumer, accounting for nearly 45% of world consumption.
Overnight, gold futures extended losses in North American trade on Monday, after falling sharply overnight, as the dollar firmed after data showing improving U.S. wage growth offset an overall weaker payroll report, maintaining expectations of two rate hikes this year.
The Labor Department reported Friday that the U.S. economy added 160,000 jobs last month, the smallest increase since September and well below the 202,000 jobs forecast by economists. However, average hourly earnings rose by eight cents, or 0.3%, bringing the year-on-year increase to 2.5% from 2.3% in March.
Meanwhile, New York Fed President William Dudley said Friday that it was reasonable to expect two more rate hikes this year despite weaker-than-expected April data on hiring.
On Monday, Charles Evans, president of the Chicago Fed, said the U.S. economy's fundamentals are solid and growth this year should pick up to around 2.5%, while adding that the Fed's current 'wait and see' approach to monetary policy is appropriate.
Prices of the yellow metal are up nearly 20% so far this year as expectations faded that the Fed would move to normalize interest rates due to fears over the global economy.
Gold is sensitive to moves in U.S. rates, as a rise would lift the opportunity cost of holding non-yielding assets such as bullion. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.