Gold prices edged lower as traders awaited U.S. inflation data to influence the timing of a Fed rate cut

Gold prices edged lower on Tuesday as traders awaited U.S. inflation data on Friday, which could affect the timing of the Federal Reserve's move to cut interest rates. The indicator is expected to show a slight easing in price pressures, which could support the case for a U.S. interest rate cut later this year. Gold prices rose to a record high above $2,400 an ounce early last week, but are now down about 4% from their peak, with many analysts seeing further gains ahead. Carsten, an analyst at Julius Baer Group, believes that the recent decline is mainly due to the unwinding of positions in the futures market, which is a cooling of very bullish market sentiment, rather than a change in the favorable fundamental background.