Investing.com - Gold prices extended Monday's losses into Tuesday as investors avoided the precious ahead of the Federal Reserve's decision on interest rates and monetary policy due out Wednesday.
Soft inflation data failed to attract investors to the yellow metal.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were down 1.17% at USD1,366.85 a troy ounce in U.S. trading on Tuesday, up from a session low of USD1,360.25 and down from a high of USD1,385.35 a troy ounce.
Gold futures were likely to test support USD1,353.25 a troy ounce, the low from May 22, and resistance at USD1,391.35, Monday's high.
Gold prices hovered lower amid uncertainty over the fate of Federal Reserve stimulus measures, which tend to make gold an attractive hedge.
The dollar edged lower against the euro and other currencies after soft inflation data hit the wire earlier and fueled speculation that the Fed may keep policy ultra-loose and the greenback weak, though investors avoided gold until the U.S. central bank makes it latest policy stance known on Wednesday.
Gold and the dollar tend to trade inversely with one another.
The Labor Department said the country's consumer price index in May rose 1.4% on year, in line with forecasts and up from 1.1% in April, though still below the Fed's 2.0% target.
Consumer prices rose 0.1% in May from April, slightly below expectations for a 0.2% increase.
Core inflation, which excludes food and energy costs, rose 0.2% in May from April, also in line with expectations.
The year-on-year core inflation rate came in unchanged at 1.7%
In a separate report, the Commerce Department said the number of building permits issued in the U.S. fell 3.1% in May to 974,000, outpacing expectations for a decline of 2.8% to 975,000 units, which gave the euro room to rise.
U.S. housing starts rose by 6.8% last month to hit 914,000 units, below expectations for an increase of 11.4% to 950,000.
Elsewhere on the Comex, silver for July delivery was down 0.60% at USD21.627 a troy ounce, while copper for July delivery was down 1.23% and trading at USD3.158 a pound.
Soft inflation data failed to attract investors to the yellow metal.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were down 1.17% at USD1,366.85 a troy ounce in U.S. trading on Tuesday, up from a session low of USD1,360.25 and down from a high of USD1,385.35 a troy ounce.
Gold futures were likely to test support USD1,353.25 a troy ounce, the low from May 22, and resistance at USD1,391.35, Monday's high.
Gold prices hovered lower amid uncertainty over the fate of Federal Reserve stimulus measures, which tend to make gold an attractive hedge.
The dollar edged lower against the euro and other currencies after soft inflation data hit the wire earlier and fueled speculation that the Fed may keep policy ultra-loose and the greenback weak, though investors avoided gold until the U.S. central bank makes it latest policy stance known on Wednesday.
Gold and the dollar tend to trade inversely with one another.
The Labor Department said the country's consumer price index in May rose 1.4% on year, in line with forecasts and up from 1.1% in April, though still below the Fed's 2.0% target.
Consumer prices rose 0.1% in May from April, slightly below expectations for a 0.2% increase.
Core inflation, which excludes food and energy costs, rose 0.2% in May from April, also in line with expectations.
The year-on-year core inflation rate came in unchanged at 1.7%
In a separate report, the Commerce Department said the number of building permits issued in the U.S. fell 3.1% in May to 974,000, outpacing expectations for a decline of 2.8% to 975,000 units, which gave the euro room to rise.
U.S. housing starts rose by 6.8% last month to hit 914,000 units, below expectations for an increase of 11.4% to 950,000.
Elsewhere on the Comex, silver for July delivery was down 0.60% at USD21.627 a troy ounce, while copper for July delivery was down 1.23% and trading at USD3.158 a pound.