The price of gold was ticking higher Tuesday morning, with the US dollar moving lower versus a basket of currencies ahead of the release of inflation data.
Gold for August delivery, the most actively traded contract, edged up $3.70 to $1,287.20 an ounce. Yesterday, gold settled marginally higher ahead of the U.S. Federal Reserve Chairman Ben Bernanke's testimony before U.S. lawmakers later this week and on China's second quarter gross domestic product data which was in line with expectations.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 939.07 tons.
Meanwhile, the U.S. dollar was moving lower versus the euro and sterling, while weak versus the Swiss franc and the yen.
In economic news from the euro zone, German economic sentiment deteriorated unexpectedly in July, survey data from the Center for European Economic Research revealed. The ZEW indicator of economic sentiment fell 2.2 points to 36.3 point-mark, while it was forecast to improve to 40. Nonetheless, it remains above the historical average of 23.7.
Inflation in euro area accelerated to 1.6 percent in June from 1.4 percent in May, the Eurostat said, confirming its flash estimate. Month-on-month, the harmonized index of consumer prices increased 0.1 percent in June.
In a separate report, the Eurostat said eurozone's trade in goods with the rest of the world resulted in a surplus in May, which was higher than a month earlier. The trade surplus rose to EUR 15.2 billion in May from a downwardly revised EUR 14.1 billion in April. A year earlier, the surplus amounted to EUR 6.6 billion.
U.K. inflation rose to 2.9 percent in June on higher motor fuel and clothing and footwear charges, data from the Office for National Statistics showed. It was the fastest since April 2012. Although the rate exceeded the 2.7 percent seen in May, it stayed marginally below the expected rate of 3 percent. Month-on-month, consumer prices fell 0.2 percent, offsetting the 0.2 percent increase in the prior month.
Elsewhere, the prices of silver and platinum were trading flat in morning deals.
From the U.S., the Labor Department will release its report on consumer prices at 8:30 am ET. Economists expect consumer prices to have increased by 0.4 percent month-over-month in June, while core consumer prices may have edged up 0.2 percent.
Later during the session, the National Association of Home Builders will release the results of its homebuilder confidence survey for July. Economists expect the housing market index to have remained unchanged at 52 in July.
