Grapevine

Gold eases as traders strap in for U.S. economic data

Gold prices drifted lower on Tuesday, while investors awaited a slew of U.S. economic data to gauge the size of the Federal Reserve's expected interest rate cut this month.

Spot gold eased 0.2% at $2,494.19 per ounce by 0155 GMT. Prices hit a record high of $2,531.60 on Aug. 20.

U.S. gold futures fell 0.1% at $2,526.10.

The dollar lingered near a two-week high. A stronger dollar makes gold less appealing for other currency holders.

"Gold is unable to recapture levels around all-time highs due to lack of fresh positive catalysts. If we see U.S. data pointing to a weak economy and the Fed taking to the narrative of having a jumbo rate cut, gold will rally," said Kelvin Wong, OANDA's senior market analyst for Asia Pacific.

"Prices could go as high as $2,640 this year, likely to hit when the Fed confirms that it is kick starting a long-term rate cut cycle."