Investing.com - Gold prices edged higher on Tuesday, but gains were limited amid speculation the Federal Reserve could raise interest rates as early as September.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery tacked on $1.90, or 0.16%, to trade at $1,175.50 a troy ounce during European morning hours after hitting an intraday peak of $1,177.80, the most since June 5.
A day earlier, gold prices rose $5.50, or 0.47%, to close at $1,173.60. Prices slumped to an 11-week low of $1,162.10 on June 5.
Futures were likely to find support at $1,162.10, the low from June 5, and resistance at $1,186.60, the high from June 4.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 95.30, moving off overnight lows of 94.86.
The dollar remained supported amid growing expectations for a rate hike from the Federal Reserve later this year.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Meanwhile, developments surrounding talks between Greece and its international creditors remained in focus.
German Chancellor Angela Merkel warned Monday that “there isn’t much time left” to reach an agreement on a cash-for-reforms deal needed to unlock more financial aid before the country runs out of money.
Athens delayed a key debt payment to the International Monetary Fund on Friday, saying it would repay the money along with other payments due this month by the end of June.
Also on the Comex, silver futures for July delivery rose 3.6 cents, or 0.23%, to trade at $15.99 a troy ounce. Silver prices fell to $15.88 on Monday, the weakest level since April 30, before closing at $15.95, down 2.5 cents, or 0.16%.
Elsewhere in metals trading, copper for July delivery ticked up 0.1 cents, or 0.05%, to trade at $2.698 a pound.
Disappointing Chinese inflation data added to speculation policymakers will have to introduce further stimulus measures to jumpstart the economy amid lackluster growth.
The Asian nation is the world's largest copper consumer, accounting for nearly 40% of global demand.