Investing.com - Gold prices drifted higher in listless trade on Tuesday, as market players looked ahead to monthly U.S. inflation indicators due later in the week for fresh clues on the timing of the next Federal Reserve rate hike.
A report on producer prices for July is due out on Thursday and the consumer price inflation report will be released on Friday.
Markets remain skeptical the Fed will raise rates in December, according to Investing.com’s Fed Rate Monitor Tool, due to worries over the subdued inflation outlook, but it is widely expected to start the process of reducing its balance sheet by September.
Comex gold futures for August were at $1,265.95 a troy ounce by 3:25AM ET (0725GMT), up $1.20, or around 0.1%.
Gold prices ended mostly flat but in positive territory on Monday.
The yellow metal has been well-supported in recent weeks as fading expectations for a third Fed rate hike this year combined with deepening political turmoil in the White House boosted the appeal of the precious metal.
Elsewhere on the Comex, silver futures shed 2.7 cents, or around 0.2%, to $16.22 a troy ounce. It fell to its lowest since July 18 at $16.09 on Monday.
Meanwhile, copper futures declined 0.9 cents, or roughly 0.3%, to $2.898 a pound, after China reported weaker-than-anticipated exports and imports for July, raising concerns over whether global demand is starting to cool.
The Asian nation is the world’s largest copper consumer, accounting for almost 45% of world consumption last year.