Gold holds near 1-month low ahead of US data, Fed speakers

Gold hovered near a one-month low on Tuesday, as investors awaited a set of key US economic data and comments from Federal Reserve officials for further clarity on the interest rate trajectory.

Spot gold slipped 0.1% to $2,617.15 per ounce by 0436 GMT, after hitting its lowest since Oct. 10 on Monday. US gold futures rose 0.2% to $2,623.30.

The US dollar held near a four-month high, as investors continued to pile into trades seen as benefiting from the incoming Donald Trump administration. A stronger dollar makes bullion less attractive for holders of other currency.

"Gold has succumbed to the purple patch of the US dollar in the aftermath of the election. The President-elect's policies appear to be a boon for the dollar and potentially from an inflationary standpoint, it could slow down the Fed's rate-cutting trajectory in 2025," said Tim Waterer, chief market analyst at KCM Trade.

Gold is considered a hedge against inflation, but higher interest rates reduce the appeal of the non-yielding asset.

Focus is on the October Consumer Price Index data on Wednesday, the Producer Price Index and weekly jobless claims on Thursday, and retail sales data on Friday.

Multiple US central bank officials are also scheduled to speak this week, including Fed Chair Jerome Powell.

"There is still a fundamental path higher for gold, though it will likely require the dollar to lose some momentum. A soft inflation report would increase the odds of a December rate cut, which may give gold a reprieve," added Waterer.

Traders see a 68.5% chance of a rate cut in December, versus around 80% chance before Trump's victory, according to the CME FedWatch Tool.

According to Reuters technical analyst Wang Tao, spot gold may retest support at $2,610, a break below which could open the way towards $2,566-$2,588.

Spot silver dipped 0.4% at $30.57, platinum lost 0.9% to $956.45 and palladium fell 1% at $971.07.