Gold Prices Rebound Amid Pullback By The U.S. Dollar

(RTTNews) - After moving sharply lower in the previous session, the price of gold moved back to the upside during trading on Tuesday.

Gold for June delivery climbed $15.20 to $2,019 an ounce after slumping $22.60 to $2,003.80 an ounce in the previous session.

The rebound by the price of gold was partly due to a pullback by the value of the U.S. dollar, with the U.S. dollar index slipping by 0.3 percent.

Gold may also have benefitted from its appeal as a safe haven ahead of Wednesday's release of the Labor Department's report on consumer price inflation, which could impact the outlook for interest rates.

Economists currently expect consumer prices to rise by 0.3 percent in March, while the annual rate of growth is expected to slow to 5.2 percent from 6.0 percent.

Core consumer prices, which exclude food and energy prices, are expected to climb by 0.4 percent in March, although the year-over-year growth is expected to accelerate to 5.6 percent from 5.5 percent.

Ahead of the report, CME Group's FedWatch Tool is currently indicating a 74.4 percent chance the Federal Reserve will raise rates by a quarter point next month.

Reports on produce price inflation, retail sales and industrial production are also likely to attract attention in the coming days.