Gold prices climbed to near three-week highs on Tuesday, supported by a weaker dollar and positioning ahead of key US inflation data that could impact the Federal Reserve's interest rate hike plans.
Spot gold was up 0.7% to $1,937.70 per ounce, after gains in the previous three sessions. It hit its highest level since April 26th.
The weaker US dollar made gold cheaper for holders of other currencies, helping prices.
Investors are awaiting Wednesday's US Consumer Price Index report for clues on inflation and the Fed's path. If inflation comes in lower than expected, it could point to an earlier end to rate hikes, boosting gold.
However, several Fed officials said on Monday that rates would likely need to rise further to bring inflation down, though the end of the tightening cycle was approaching.
Central bank gold purchases are also providing support to prices.
In other precious metals, silver and platinum rose while palladium gained slightly.
The analysts said a weaker-than-expected inflation print on Wednesday could send gold prices higher as it would signal a sooner end to rate hikes. But they cautioned traders were waiting for the data before making big bets.
