2023.04.1109:42:00UTC+00Gold Prices Edge Higher On Weaker Dollar

Gold traded higher on Tuesday as the dollar weakened following a three-day rally.

Spot gold rose 0.6 percent to $2,003.10 per ounce, while U.S. gold futures were up 0.7 percent at $2.018.

The dollar fell against major rivals as investors await more U.S. data this week for further clarity on what the Federal Reserve will do next.

After last week's U.S. jobs data pointed to a tight labor market, traders now await U.S. CPI data, reports on retail sales and industrial production, the release of FOMC meeting minutes and speeches by Fed officials this week for additional clarity on the economic and rate outlook.

CME Group's FedWatch Tool currently indicates a 71.7 percent chance the Federal Reserve will raise interest rates by a quarter point next month.

The U.S. inflation report is due on Wednesday. Economists expect the report to show consumer price inflation slowed last month but remains well above the Fed's target.

The U.S. earnings season kicks off this week, with Delta Air Lines, JPMorgan Chase and UnitedHealth Group among the S&P 500 companies to unveil their financial results for the first three months of the year.