FX.co ★ Gold Edges Higher On Weaker Dollar Ahead Of US CPI Data

Gold prices traded in a tight range on Tuesday and the dollar weakened ahead of U.S. CPI data due later in the day and the Fed's interest-rate decision scheduled for Wednesday.

Spot gold rose 0.3 percent to $1,963.36 per ounce, while U.S. gold futures were up 0.4 percent at $1,977.15.

Market participants remain hopeful that U.S. inflation data later in the day would likely show an easing in prices in May, and that the Federal Reserve would resist raising rates at the end of a two-day policy meeting on Wednesday.

The accompanying policy statement may offer insights as to whether there is a chance of another quarter point rate hike next month.

Elsewhere, China's central bank lowered a short-term lending rate for the first time in 10 months earlier today.

The European Central Bank announces its rate decision on Thursday, with a 25-basis points hike expected.

The Bank of Japan is likely to maintain its ultra-dovish stance and yield control settings when it meets on Friday.