Gold prices slipped on Tuesday as a buoyant dollar continued to weigh on the market amid renewed hopes of a US- North Korea summit. Spot gold was 0.1 percent lower at $1,296.91 per ounce at 0730 GMT, while US gold futures for June delivery fell 0.6 percent to $1,296.40 per ounce. "There seems to be a lack of conviction in the market, particularly after the North Korean summit... and that's come at a time when we are looking at another rate hike in the US," said ANZ analyst Daniel Hynes.
Markets are awaiting US inflation data due later this week that could provide clues to future interest rate increases ahead of the June Federal Reserve policy meeting. Higher interest rates tend to boost the dollar, making greenback-denominated gold more expensive for holders of other currencies and denting its non-yielding appeal. "The yellow metal will look to consolidate above $1,300 to resume a push higher, while down-side support sits around $1,295," MKS trader Samuel Laughlin said in a note.
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