Gold prices muted ahead of major U.S. data releases

Gold prices remained subdued on Tuesday, having lost the $2,000 an ounce level this week as markets brace for major U.S. economic data releases.

The yellow metal has slumped sharply away from record highs above $2,135 an ounce. Spot gold inched up 0.2% to $1,984.95 an ounce in early European trade.

Attention is squarely focused on U.S. inflation data due later on Tuesday, which could offer clues on the Federal Reserve’s path for interest rates in 2024. The Fed’s final policy decision for the year follows on Wednesday.

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Bets on an early Fed rate cut next year had briefly driven gold to fresh records earlier this month. But resilience signs in the economy and a firmer dollar have pressured the metal back below $2,000 as markets bet the Fed will keep rates higher for longer – once again.