02:00 PM EST, 01/14/2025 (MT Newswires) -- (Updates prices.)

Gold edged higher mid-afternoon on Tuesday as the dollar fell after a U.S. inflation measure rose less than expected last month, while a report said the Trump Administration plans to gradually introduce tariffs on U.S. imports.

Gold for February delivery was last seen up US$4.70 to US$2,683.30 per ounce.

The U.S. Bureau of Labor Statistics reported the Producer Price Index (PPI) rose 0.2% in December from the prior month, under expectations for a monthly rise of 0.3%, according to FactSet. The data comes ahead of Wednesday's release of the U.S. December Consumer Price Index, which is expected to show a monthly rise of 0.3%, unchanged from November.

Bloomberg on Monday reported Trump's economic team may be planning a slow ramp up in planned tariffs, raising levies monthly to boost negotiating leverage and avoid spiking inflation that could lead to interest-rate hikes from the Federal Reserve.

The dollar fell following the inflation data and the Bloomberg report, with the ICE dollar index last seen down 0.67 points to 109.29.

Treasury yields were mixed, with the U.S. two-year note last seen paying 4.377%, down 1.7 basis points, while the yield on the 10-year note was up 1.2 points to 4.799%.