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Gold Subdued Ahead Of US Inflation Data

Gold prices were moving in a narrow range on Tuesday and the dollar traded firm after another Fed official joined the tapering bandwagon.

Spot gold dipped 0.3 percent to $1,788.60 an ounce, while U.S. gold futures were down 0.3 percent at $1,789.70.

With inflation data coming in stronger than expected, speculation is rife that the U.S. Federal Reserve could reduce its asset purchases sooner rather than later despite a surge in COVID-19 cases.

The Philadelphia Fed President Patrick Harker became the latest official to say he supports moving toward a tapering process sooner rather than later.

A flurry of U.S. economic data is due out this week, starting with U.S. consumer inflation data later in the day, which could provide more clues on the health of the world's largest economy and when the Federal Reserve could start rolling back easy credit and other stimulus.

The Fed's two-day monetary policy meeting is scheduled for next Tuesday and Wednesday, but recent signs of slowing economic momentum could lead the central bank to hold off on discussing tapering.

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