Gold inches up -

Gold prices firmed on Tuesday as investors awaited the crucial inflation report this week, which can significantly influence the outlook on US interest rates, reports Reuters.

Spot gold was up 0.4 per cent at $2,345.39 2 per ounce by 1209 GMT, after dropping 1 per cent on Monday. US gold futures rose 0.4 per cent to $2,351.20.

"Gold's relatively flat performance today shows that markets remain on tenterhooks and aren't willing to take an outsized view of how the incoming US data will pan out," said Han Tan, chief market analyst at Exinity Group.

Investors are now looking forward to the US consumer price index report due on Wednesday.

The Federal Reserve Bank of New York said in its latest Survey of Consumer Expectations that respondents project inflation a year from now at 3.3 per cent from March's 3 per cent, while inflation three years from now is seen moderating to an expected 2.8 per cent rise from the prior month's 2.9 per cent.

Spot silver rose 0.7 per cent to $28.39 per ounce and palladium gained 1.1 per cent to $1,007.35.

Platinum was up 0.9 per cent at $969.25, after hitting a near one-year peak of $1,016.40 on Monday.