Gold futures on Tuesday were headed higher, attempting to rebound from the first loss on Monday for the commodity in eight sessions, with the precious metal drawing support from higher inflation in much of the world.
The early gains on Tuesday came despite a slight pop higher in the U.S. dollar, as measured by the ICE U.S. Dollar Index, which was up 0.1% on Tuesday, hanging near its highest level in about 16 months.
A firmer dollar can make assets priced in the currency comparatively more expensive to overseas buyers.
“The price of the precious metal remains supported, despite the strengthening dollar, as inflation-related worries drive higher demand for the safe haven of gold,” wrote Ricardo Evangelista, senior analyst at ActivTrades, in a daily research note.
was trading $6.40, or 0.3%, higher at $1,873 an ounce, following a 0.1% decline on Monday, which ended a string of gains of the longest string of gains for a most-active contract, seven straight days, since a nine-day rise that ended on July 29, 2020, according to Dow Jones Market Data.
Commodity investors are training their eye on Tuesday’s data, which include a report on U.S. retail sales for October, and a report on import and export prices, both at 8:30 a.m. ET. A reading of U.S. industrial production at 9:15 a.m. may also be watched for signs of health of the world’s largest economy and its recovery from COVID-19.
Meanwhile, silver for December delivery
was trading 25 cents, or 1%, higher at $25.35 an ounce.