by Arundhati Sarkar
November 9 – Gold prices rallied near one-month highs on Tuesday as investors avoided betting big ahead of this week’s US inflation data, which could guide strategy interest rates from the Federal Reserve.
* 0900 . Feather GMTSpot gold was little changed at $1,712.87 an ounce, while US gold futures were flat at $1,715.60.
* Gold price rose over 2% and broke above the key $1,700 level on Tuesday.
*Given that the rally of the previous session was mostly due to short-term traders covering their short positions after the dollar pullback, it is natural that there will be no follow-up as the move will not affect any movement in the physical market. That’s unlikely to trigger it, said Julius Baer analyst Carsten Menke.
* The dollar index declined marginally, increasing the attractiveness of gold for foreign investors.
*Inflation figures will be published on Thursday. Since Indian Penal Code Menke said the data is currently the most important, a softer-than-expected reading raising hopes that the Fed will curb its tightening trend, which could add weight to the dollar and boost gold.
* Although the gold metal is considered a hedge against inflation, rising rates also make other assets more attractive than bullion, which does not carry interest.
* Among other precious metals, spot silver rose 0.5% to $21.4491 an ounce; Platinum rose 0.1% to $998.51; And palladium was up 0.9% at $1,937.75.