Gold firms

Gold prices ticked higher on Tuesday, with investors awaiting comments from Federal Reserve Chair Jerome Powell and the U.S. June inflation data for further cues on the likely direction of interest rates.

Spot gold was up 0.1 percent to $2,360.59 per ounce as of 1210 GMT. US gold futures firmed 0.2 percent to $2,367.10.

Powell is due to speak before the Senate on Tuesday and the House on Wednesday.

"Markets expectations for the timing of Fed rate cuts remain gold's primary driver... should Chair Powell unexpectedly sound dovish, that should restore spot gold back closer to the psychological $2,400 level," said Han Tan, chief market analyst at Exinity Group.

The consumer price index (CPI) data on Thursday will also be closely watched, with recent numbers showing a cooling from unexpectedly high levels at the start of the year.

If markets are shown evidence of still-stubborn US inflation, that may prompt the precious metal to unwind more of its recent gains, Tan said.

A jobs report on Friday showed US unemployment rate climbed to 4.1 percent. Traders currently see about a 75 percent chance of a rate cut in September, up from 66 percent a week ago, according to the CME Group's FedWatch Tool. Another cut is expected by December.

Non-yielding bullion's appeal tends to shine when interest rates are lower.

Physical gold demand likely softened in the second quarter but it should rebound into year-end, analysts at Citi said.

Gold consumption growth is still trending positive for 2024 and could help push spot prices towards $2,400-$2,600 in the second half as financial investors play catch-up, they added.