Investing.com– Gold prices rose slightly in Asian trade on Tuesday, recovering marginally from steep losses in the prior session as focus remained squarely on upcoming U.S. inflation data for more cues on interest rates.

While the yellow metal saw some strength last week, it remained well below record highs hit in April, with traders remaining biased towards the dollar amid fears of high-for-longer U.S. rates.

rose 0.3% to $2,343.60 an ounce, while expiring in June rose 0.3% to $2,349.05 an ounce by 00:22 ET (04:22 GMT). 

PPI, CPI inflation awaited for more rate cues 

U.S. data was due later on Tuesday, while the more closely-watched reading was due on Wednesday.

Both readings are likely to factor into the outlook for U.S. interest rates, after overheated inflation readings through the first quarter saw markets largely price out most bets on interest rate cuts this year.

While this trade pointed to more headwinds for gold, the yellow metal benefited from increased safe haven demand amid heightened geopolitical tensions in the Middle East. But some de-escalation, specifically between Iran and Israel, left gold vulnerable to pressures from interest rates.

High-for-longer rates bode poorly for gold, given that they increase the opportunity cost of investing in the yellow metal. 

Other precious metals also advanced on Tuesday. rose 0.1% to $1,011.05 an ounce, while rose 0.9% to $28.688 an ounce.

Copper prices hit 2-yr highs as China stimulus cheer offsets property fears 

Among industrial metals, copper prices rose to two-month highs on Tuesday, as traders cheered more signals from China on a massive, 1 trillion yuan ($138 billion) bond issuance. 

Chinese authorities said they will begin issuing the bonds, which will be dated between 20 and 40 years, by this week. The issuance is aimed chiefly at shoring up infrastructure spending and boosting an economic recovery in the country.

This factored into a more optimistic outlook for copper demand. on the London Metal Exchange rose 0.2% to $10,227.0 a ton, while rose 0.5% to $4.7940 a pound. Both contracts were at their highest since April 2022. 

News of the Chinese bond issuance largely offset negative cues on China’s property market, as another major developer defaulted on its bond payments.