Gold Futures Settle Modestly Higher

WASHINGTON (dpa-AFX) - Gold prices climbed higher on Tuesday, although a stronger dollar limited the commodity's upside.

The dollar index climbed to 105.21, gaining about 0.2%.

Gold futures for July ended up $4.90 or about 0.21% at $2,360.10 an ounce.

Silver futures for July settled higher by $0.154 or about 0.5% at $30.772 an ounce, while Copper futures dropped to $4.5870 per pound, down $0.0350 from the previous close.

Investors looked ahead to key U.S. data on consumer and producer price inflation. The U.S. CPI report is due on Thursday and is expected to show inflation easing to 3.1% in June from 3.3% in May. The producer price inflation report is expected Friday.

Appearing before the Senate Banking Committee, Federal Reserve Chair Jerome Powell said more good data would strengthen the central bank's confidence inflation is moving sustainably toward its 2% target and lead to a potential interest rate cut.

'The Committee has stated that we do not expect it will be appropriate to reduce the target range for the federal funds rate until we have gained greater confidence that inflation is moving sustainably toward 2%,' Powell said in prepared remarks.

'Incoming data for the first quarter of this year did not support such greater confidence,' he continued. 'The most recent inflation readings, however, have shown some modest further progress, and more good data would strengthen our confidence that inflation is moving sustainably toward 2%.'

Results of the monthly survey by the National Federation of Independent Business showed small business sentiment in the U.S. unexpectedly rose in June and at a faster than expected pace, to reach its highest level thus far this year, but inflation remained a top concern for firms.

The NFIB Small Business Optimism Index rose to 91.5 from 90.5 in May. Economists had expected the reading to ease to 90.3.

The last time the index was higher was in December of 2023 when it reached 91.9, the NFIB said.

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