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# Gold futures struggle to find purchase above $1,900

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Gold futures struggle to find purchase above $1,900

Gold futures were fighting to claim a spot above $1,900 an ounce on Tuesday, a level watched by market technicians, a day after booking back-to-back gains.

Some firmness in the U.S. dollar was creating some friction for bullion, with investors hoping to propel the asset above a $1,900-an-ounce threshold, seen as a level of resistance for prices.

August gold
GCQ21,
+0.12%
GC00,
+0.12%
 rose $3.30, or less than 0.2%, at $1,902 an ounce, after closing 0.4% higher on Monday. Prices for the most-active contract haven’t settled above $1,900 since Wednesday.

“Gold prices are stalling after a strong two-day rally, which saw the precious metal gain 1.5% across Friday and Monday,” wrote Sophie Griffiths, market analyst at Oanda, in a Tuesday note.

 “Little has changed for gold in terms of fundamental drivers on Tuesday. Inflation and the Fed’s next move continue to be the key drivers for the precious metal,” the analyst said.

A Thursday U.S. inflation report may provide the clearest impetus for commodity traders in the form of May consumer-price index. A hotter-than-expected read on the April CPI, which rose 4.2% year over year, temporarily rattled markets last month.

Another elevated U.S. CPI report could increase bets of a more rapid unwind of the Federal Reserve’s easy-money measures, implemented at the height of the COVID-inspired market turmoil in March of 2020.

Also on Thursday, investors may watch for policy guidance from the European Central Bank, which is slated to update its monetary policy plans, a week before the Fed’s two-day meeting that kicks off June 15.

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