The gold market moved lower on Tuesday, down 0.40% as the latest inflation report in the United States (US) is now more favorable to the US dollar and undermines the high position of the traditional safe-haven asset.
At 9 am, the price of gold was at $3,332.96, up 0.26% since it opened in early trading Wednesday in the Asian session.
President Donald Trump's speech and the risk-off market mood will continue to influence gold to move lower.
The market mood was mixed, with US stocks fluctuating between gains and losses following the release of the Consumer Price Index (CPI) for June where the annual and core readings rose.
As a result, the market saw confidence that the Federal Reserve (Fed) will keep interest rates unchanged while awaiting further data ahead of the September meeting, followed by the Jackson Hole Symposium.
Last week, Donald Trump announced 30% tariffs on the European Union (EU) and Mexico. The news initially pushed gold higher and investors began paring gains a few days later as the US opened the door to negotiations.
In addition, Trump remained active on social media and revealed a trade deal with Indonesia. He was also vocal about the latest inflation report and called for the Fed to cut interest rates.
Ahead of the week, traders will be watching inflation on the producer side, Retail Sales, employment data and the University of Michigan Consumer Sentiment report.
