FX.co ★ Gold Slips As Dollar Rebounds On Rate Hike Worries

Gold prices edged lower on Tuesday, the dollar rose against its major peers and U.S. Treasury yields edged up amid worries about Fed and ECB policy tightening.

Spot gold slipped 0.3 percent to $1,850.37 per ounce, while U.S. gold futures were down 0.2 percent at $1,853.

In a speech at the Institute for Monetary and Financial Stability in Frankfurt, Germany, Federal Reserve governor Christopher Waller said that he favored 50 basis point hike at every meeting until there is a substantial reduction in inflation.

Eurozone inflation accelerated further in May on surging energy and food prices, flash data from Eurostat showed earlier today.

Inflation rose to a fresh record 8.1 percent in May from 7.4 percent in April. The rate was forecast to climb to 7.7 percent.

The data heightened concerns about the pace and scale of looming interest rate hikes, with traders now factoring in an outsized 50 basis point ECB rate hike in July.

German inflation rose to its highest level in nearly half a century in May on the back of soaring energy and food prices, data released on Monday showed.

Looking ahead, Canada GDP data for the first quarter, U.S. FHFA's house price index and S&P/Case-Shiller home price index for March and consumer confidence index for May will be featured in the New York session.