Gold prices weakened slightly on Tuesday (July 15th) as market participants awaited tariff updates, while inflation reports showed a long-anticipated increase in US consumer prices last month.

Spot gold prices fell 0.2% to $3,336.99 an ounce, as of 9:40 a.m. EDT (1:40 p.m. GMT). US gold futures fell 0.4% to $3,345. The US dollar strengthened 0.2%, making gold more expensive for holders of other currencies.

"I think the market continues to focus on tariffs, which is keeping gold strong. I remain bullish on gold, even though we're in the range that's been in place since mid-May," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Over the weekend, US President Donald Trump threatened to impose higher tariffs, including 30% on imports from the European Union and Mexico. On Tuesday, data showed the US Consumer Price Index rose 0.3% last month, in line with expectations, after a slight 0.1% increase in May. The increase was the largest since January.

The Federal Reserve is likely to begin cutting short-term borrowing costs in September, traders continued to bet on after the data.

"Honestly, gold should be more bullish. This seems to reinforce the view that we need a new driver to push gold back above $3,400," said Tai Wong, an independent metals trader.

Investors will next be watching the US Producer Price Index data released on Wednesday for guidance. Gold is considered a safe-haven asset during times of economic and geopolitical uncertainty. It also tends to perform well in low-interest rates, as it offers no yield.

Elsewhere, spot silver fell 0.4% to $37.98 an ounce, after hitting its highest level since September 2011 on Monday. "The next upside target for silver is $41.61/oz. I think the market will view any dip as a buying opportunity," Grant said.

Platinum rose 1.4% to $1,382.57, while palladium rose 0.6% to $1,200.50. (alg)

Source: Reuters