Gold pulled back Tuesday after earlier touching a more-than-three-month high as
markets focus on upcoming US inflation data and a speech by Fed Chair Kevin
Warsh. IG analyst Tony Sycamore said pullbacks are likely to attract strong
buying. Last week the US Treasury doubled the size of liquidity-support repo
operations for longer-dated Treasuries, which boosted gold and raised concerns
about dollar weakness. TD Securities said those concerns should support gold in
the coming weeks given the Fed has not signaled it is ready to counter rising
inflation, but warned that sustained oil-driven upward pressure on rates would
limit a near-term large gold rally.
