Commodity Capsule: Gold prices pared early gains on Tuesday, due to slight recovery in dollar index

Investor focus turns to US inflation data due later this week, which could shed more light on the timing of the Federal Reserve's first interest rate cut this year.

US gold futures edged lower to $2,170 per ounce.

Dollar index hovers 104 level against its rivals

Gold prices hit a record high last week after Fed policymakers indicated they still expected to reduce interest by75 bps by 2024 end despite recent high inflation readings.

Chicago Fed Bank President Austan Goolsbee said on Monday that at Fed's policy meeting last week he penciled in three rate cuts for this year.

Fed Governor Lisa Cook cautioned US central bank needs to proceed carefully as it decides when to begin cutting interest rates.

Investors now look forward to US core personal consumption expenditure price index data due on Friday.

Traders are pricing in 70% probability that the Fed will begin cutting rates in June

Oil prices were on track to gain for a second straight day on Tuesday

Crude oil benchmarks settled over 1% higher on expectations of tighter supply driven by Russian production cuts and attacks on Russian refineries.

Brent crude rose past $87 a barrel. WTI crude futures climbed past $82/bbl.

Crude oil gained on supply side issues and continued Middle East tensions

Russia set to reduce output to meet OPEC target of 9 million barrels/day. In late February, Russia had been producing about 9.5 million barrels per day.

At the same time, Ukranian attacks on Russian oil refineries have continued. Russia's Kuibyshev refinery had to shut half of its capacity after a fire broke out on Saturday morning.

Macquarie forecast that US refinery crude runs would increase by 300,000 bpd next week against a decrease in domestic supply of 500,000 bpd

All LME metals are trading in red owing to recovery in dollar index

Base metals demand from China remains uncertain

Copper futures on London Metal Exchange has slipped to 2 week low near $8,840 a Tonne

Copper reported first weekly drop in three, last week
Global refined copper market showed a 84,000 metric tons surplus in January, compared with a 27,000 metric tons surplus in December-- International Copper Study Group

ShFE copper stocks jumped from just 30,905 metric tons at the end of December to 285,090 tons on March 22.
Aluminium prices dipped slightly, although hovering near 3month high over concerns over slow recovery in production in China's Yunnan province and supported by a strong technical outlook.