WASHINGTON (dpa-AFX) - Gold prices moved higher on Tuesday, extending gains to a third straight session, as investors picked up the safe-haven asset amid concerns about geopolitical tensions.
A subdued dollar supported the yellow metal's rise.
Investors looked ahead to the minutes from the Federal Reserve's most recent monetary policy meeting, and the European Central Bank's policy announcement for clues about interest rates.
U.S. consumer price and producer price inflation data, due later in the week, are also eyed for clues about interest rates.
Geopolitical concerns are back in focus following Hamas rejecting Israel's latest ceasefire proposal made at talks in Cairo.
The dollar index, which dropped to 103.88 around mid morning, recovered to 104.10 by little past noon, down just marginally from the previous close.
Gold futures for June moved up $13.15 or about 0.56% to $2,364.15 an ounce. The contract hit a new record high of $2,384.35 an ounce.
Gold futures for April settled at $2,343.50 an ounce, gaining $11.80 or about 0.51%.
Silver futures for May ended higher by $0.326 or 1.17% at $28.133 an ounce, while Copper futures for May settled at $4.2882 per pound, gaining 0.0122 or 0.29%.
Economists currently expect U.S. consumer prices to rise by 0.3% in March following a 0.4% increase in February.
Producer prices are expected to rise by 0.3% in March after climbing by 0.6% in February.
The inflation readings could have a significant impact on the outlook for interest rates in the wake of hawkish comments from Federal Reserve officials.
Lorie Logan, president of the Federal Reserve Bank of Dallas, and Fed Governor Michelle Bowman have voiced concerns about potential upside risk to inflation, while Chicago Fed President Austan Goolsbee said the U.S. central bank must weigh how long it can maintain the policy restrictive without damaging the economy.
Minneapolis counterpart Neel Kashkari said the Fed cannot 'stop short' on the inflation fight as oil prices creep higher.
However, former Federal Reserve Bank of St. Louis President James Bullard said in an interview with Bloomberg TV that he's expecting three interest-rate cuts this year and that's the base case.
According to CME Group data, the prospect of a first 25 basis point cut in June currently stands at 49%, down from 57% a week ago.
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