Gold prices dipped slightly on Tuesday as investors awaited key US inflation data later this week that could influence the Federal Reserve's decision on interest rates. Spot gold dipped 0.2 per cent to $2,327.52 per ounce by 0339 GMT. US gold futures mirrored the decline, falling 0.2 per cent to $2,339.90. Market analysts believe short-term technical factors are not supportive of gold. After last Friday's sell-off, short-term traders see this as a bearish signal, explained Kelvin Wong, a senior market analyst for Asia Pacific at OANDA. This explains the lacklustre movement with gold hovering around current levels. The previous Friday saw gold prices tumble over one per cent as the US dollar strengthened on the back of data showing US business activity reaching a 26-month high in June, fuelled by a rebound in employment. This week's key economic releases are the first-quarter US GDP estimates on Thursday and the Personal Consumption Expenditures (PCE) price index report on Friday. A strong core PCE reading could weaken gold's appeal, potentially pushing prices below $2,300, according to Wong. Lower interest rates typically benefit gold as they decrease the opportunity cost of holding non-interest-bearing bullion. Elsewhere in the precious metals market, spot silver fell 0.5 per cent to $29.47 per ounce. Platinum bucked the trend, rose 0.5 per cent to $999.70 per ounce. Palladium gained 1.5 per cent to $993.83 per ounce, after reaching a one-month high on Friday. Attribution: Reuters
