Gold dips ahead of US inflation data

NEW YORK: Gold prices edged lower in early Asian trade on Tuesday as investors awaited US inflation data later in the day for clues on the Federal Reserve's next policy move.

Spot gold fell 0.30 per cent to US$4,128.48 per ounce by 0024 GMT after rising more than one per cent in the previous session on softer oil prices. US gold futures for December delivery rose 0.60 per cent to US$4,137.60.

US President Donald Trump said on Monday he plans to hold off on new military strikes against Iran for the time being after appeals from countries in the region, including Qatar's prime minister during White House talks.

Brent crude futures continued tumbling after settlement on Monday, losing more than US$7 a barrel to hit their lowest level since late August.

The US central bank should move its monetary policy "with care" as it maps a response to inflation, which remains its greatest risk, Richmond Federal Reserve President Tom Barkin said on Monday, adding that he had no base case for what should be done at the December meeting.

Traders currently see an 84 per cent chance that the Fed will raise rates in December, according to CME's FedWatch tool.

Higher interest rates increase the opportunity cost of holding non-yielding bullion, reducing its appeal to investors.

The consumer price index (CPI) report is due at 1330 GMT later in the day, followed by producer price index (PPI) data on Friday.

Elsewhere, some Bank of Japan policymakers called for speeding up the pace of rate hikes as underlying inflation reached the central bank's two per cent target, a summary of opinions at its October meeting showed on Tuesday.

Among other metals, spot silver slid 0.30 per cent to US$53.25 per ounce, platinum dipped 0.30 per cent to US$1,572.28 and palladium dropped 0.90 per cent to US$1,032.21.