Gold slips 0.3% after 2 month high amid Fed uncertainty
Gold prices took a small dip on Tuesday, dropping 0.3% after hitting a two-month high earlier in the day.
US gold futures actually ticked up a bit, but overall, the market is pretty restless: last week's weak jobs report had sent prices jumping as traders tried to guess what the Federal Reserve might do with interest rates next.
CPI and PPI could sway Fed
All eyes are now on this week's US inflation reports (CPI and PPI), which could influence whether the Fed hikes rates again soon.
There's about a 50-50 chance of another rate increase in September, and 79% odds by December.
Since higher rates usually make gold less appealing, these numbers matter a lot.
Cleveland Fed's Hammack backs gradual hikes
Cleveland Fed President Beth Hammack says she supports raising rates gradually to avoid any nasty surprises later.
The central bank has already said it was time to begin raising rates gradually to avoid sharper increases later.