Canada's consumer prices rose 3.4% y/y in May, slowing down from 4.4% in the previous reading, and matching expectations.

Core prices, excluding food and energy, rose 3.7%, below estimates of 3.9%, and down from 4.1% in the previous reading. 

US durable goods orders rose 1.7% in May m/m, the third such increase in a row, while analysts expected a drop of 0.8%.

Core orders, excluding transportation, rose 0.6%, beating estimates of no change, and improving from April's 0.3% drop.

Oil prices fell over 2% in European trade on track for the first loss in three days ahead of initial US crude inventory data today.

Such data will cast shadows on the US appetite for fuel in the summer driving season, with analysts expecting another drawdown. 

Prices are pressured by fading concerns about Russian supplies as calm returns to the political stage in the country following the Wagner mutiny. 

Global Prices

US crude fell 2.4% to $67.78 a barrel, with a session-high at $70.11, while Brent shed 2.1% to $72.82 a barrel.

US crude rose 0.1% on Monday, while Brent added 0.25%, the second profit in a row as dollar declines. 

US Inventories

The American Petroleum Institute will release initial data on US crude stocks later today, expected to show a drawdown for the second week in a row.

Russian Supplies

Standard Chartered's analysts said the world is breathing a sigh of relief as political unrest in Russia got resolved quickly.

The mutiny by the Wagner militia was squashed very quickly, with Russian oil shipments going uninterrupted. 

Gold prices rose in European trade for the third straight session off three-month lows with the precious meta still moving in a positive zone as the dollar struggles against major rivals.

Gold was boosted when it approached $1,900 with political uncertainty in Russia driving haven demand on the yellow metal.

Gold Prices Today

Gold prices rose 0.4% to $1,930 an ounce, with a session-low at $1,921, after rising 0.1% yesterday, the second profit in a row away from three-month lows at $1,910.

The Dollar

The dollar index fell 0.25% on Tuesday for a second session as the dollar index declined against a basket of major rivals, in turn underpinning dollar-denominated gold futures.

Investors expect the Federal Reserve to increase interest rates by 25 basis points in July, but the path thereafter remains unclear. 

US Rates

Pricing for a 0.25% Fed rate hike in July currently stands at 76%, with Morgan Stanley heavily expecting such a hike to a final 5.50% rate.

Data

Now investors await important US data later today on durable goods orders, the housing sector, and confidence to gauge the path ahead for policies.

The SPDR

Gold holdings at the SPDR Gold Trust fell 1.44 tones yesterday, the fourth decline in a row to a total of 925.66 tones, the lowest since early May.