The price of gold fell on Tuesday after earlier hitting its highest level in more than three months.
This comes as investors await U.S. inflation data and a speech by Federal Reserve Chairman Kevin Warsh.
The price of gold in spot trading fell 0.2% to $4,640.39 per ounce.
As of 03:34 GMT. In contrast, U.S. gold futures stabilized at $4,696 per ounce.
Gold prices had risen sharply last week.
This followed the U.S. Treasury Department’s announcement that it would double its purchases of long-term bonds to support liquidity.
However, the move raised concerns about a decline in the value of the dollar.
TD Securities believes these concerns could support gold prices in the coming weeks.
However, it noted that reaching the $5,350-per-ounce level is still premature, due to the possibility of interest rate hikes in the short term.
Investors are awaiting the release of the U.S. Personal Consumption Expenditures report tomorrow, Wednesday.
This is the Federal Reserve’s preferred measure of inflation.
They are also awaiting Warsh’s speech at the Jackson Hole symposium for clues regarding monetary policy and bond yields.
Among other metals, silver fell 1.3%, platinum dropped 1.2%, and palladium declined by about 1%.
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