• Gold prices edged up on Tuesday as the dollar eased slightly, with investors waiting for U.S. inflation numbers later this week for hints on the pace of monetary tightening by the Federal Reserve.
"Gold appears to be in a holding pattern with the increasing risk that stale long positioning may see traders head for the door until some directional clarity is restored," said Jeffrey Halley, senior market analyst at OANDA.
Spot gold had risen 0.2 percent to $1,259.43 per ounce by 0415 GMT.
U.S. gold futures for December delivery advanced 0.1 percent to $1,265.70 per ounce.
• "There aren't many players in the market, nor is there much incentive (for prices) to move right now, so I think it's going to be very quiet for the rest of the month," said Yuichi Ikemizu, Tokyo branch manager at ICBC Standard Bank.
"I expect prices to creep higher (in the short term) as the dollar is still weak and that is the prevailing trend."
• Asian shares went flat on Tuesday as disappointing Chinese trade data clouded the otherwise upbeat outlook on global growth, leaving currencies and commodities becalmed in summer doldrums.
• The dollar index, which tracks the greenback against a basket of six major rivals, slipped slightly on the day to 93.333. A weaker dollar makes bullion cheaper for non-U.S. investors. [USD/]
• Spot gold may retest support at $1,255 per ounce, a break below which could cause a further loss to the next support level at $1,247, said Reuters technical analyst Wang Tao.
• In other precious metals, silver rose 0.3 to $16.28 per ounce. In the previous session, it retouched its July 20 low of $16.10 an ounce, the weakest since July 18.
• Technically, December gold futures bulls still have the overall near-term technical advantage but are now fading a bit and need to show some fresh power soon. Bulls’ next upside technical objective is pushing prices above chart resistance at last week’s high of $1,280.30. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,250.00. First resistance is seen at the overnight high of $1,265.60 and then at $1,270.00. First support is seen at last week’s low of $1,259.80 and then at $1,255.00. Wyckoff’s Market Rating: 6.0
Reference: Reuters, Kitco
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