Gold slips as dollar steadies, inflation concerns cap losses

[BENGALURU] Gold prices eased on Tuesday as the US dollar edged higher, but lingering inflation concerns kept bullion close to a more than one-week peak hit in the previous session.

Spot gold inched 0.2 per cent lower to US$1,765.41 per ounce by 5.30am GMT, after hitting US$1,770.41, its highest since Sept 23, on Monday. US gold futures were 0.1 per cent lower at US$1,766.20.

The dollar index edged up, making gold more expensive for those holding other currencies.

Top US trade negotiator Katherine Tai on Monday pledged to exclude some Chinese imports from tariffs imposed by former President Donald Trump while pressing Beijing in "frank" talks over its failure to keep promises made in Trump's trade deal and end harmful industrial policies.

US President Joe Biden said the federal government could breach its US$28.4 trillion debt limit in a historic default unless Republicans join Democrats in voting to raise it in the two next weeks.

New orders for US-made goods accelerated in August, pointing to sustained strength in manufacturing even as economic growth appeared to have slowed in the third quarter.

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India's gold imports in September soared 658 per cent from last year's lower base as a correction in local prices prompted jewellers to step up purchases for the upcoming festive season, a government source said.

Spot silver fell 0.6 per cent to US$22.52 per ounce, platinum shed 0.7 per cent to US$960.81, and palladium eased 0.2 per cent to US$1,900.58.

REUTERS