Gold futures settled notably higher on Tuesday amid expectations the Federal Reserve will end its tightening cycle sooner than earlier expected.
In addition to soft consumer price and producer price inflation, data showing a smaller than expected increase in retail sales and a drop in industrial production have added to expectations about the Fed pausing on interest rate hikes sometime soon.
The dollar's recovery from lower levels limited gold's downside. The dollar index, which dropped to 99.59 in the Asian session, climbed to 100.10 later in the day, gaining nearly 0.25%.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.