New Delhi:

Gold prices inched higher on Tuesday, poised to break a four-day losing streak as investors awaited key U.S. economic data later in the week.

With a 96% chance of a rate cut by the Federal Reserve in September, as indicated by the CME FedWatch Tool, all eyes are on the upcoming U.S. GDP report and the Fed’s preferred inflation gauge, the personal consumption expenditures price index, said Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One Ltd.

Additionally, India’s reduction of import duties on gold and silver is expected to boost retail demand and curb smuggling, potentially driving global gold prices upward, he added.

Giving the Outlook on the precious metal, Mallya said Gold prices are likely to remain under pressure, as investors await crucial U.S. economic data later in the week.

Announcing the Budget 2024 in Parliament on July 23, Finance Minister said that customs duty on Gold and Silver will be reduced to enhance domestic value addition. “To enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6 percent and that on platinum to 6.4 percent,” FM had said.