Gold prices were little changed around $1,785 an ounce on Tuesday, as markets now zero in on a slew of central bank decisions this week, including a key Federal Reserve meeting. The yellow metal has been buoyed by still elevated consumer prices, with the US inflation rate accelerating to its largest annual gain since 1982 at 6.8% in November.
However, the reading reinforced expectations for the Federal Reserve to signal a faster tapering of its asset purchases and an earlier start to rate hikes. Other central banks set to review monetary policies this week include the European Central Bank, Bank of England and Bank of Japan. Reduced stimulus and higher interest rates raise the non-yielding bullion’s opportunity cost, denting its appeal.