At a Glance
Spot gold fell 0.4% to $4,124.42 per ounce after gaining more than 1% in the previous session.
US CPI data due at 1330 GMT could influence expectations for the Fed's December decision.
Markets are pricing in an 84% chance of a December rate hike.
Trump's decision to delay further strikes on Iran added to pressure on oil prices.
Gold prices slipped as investors secured profits ahead of US inflation figures that could shape interest rate expectations and the dollar's next move.
Gold edged lower on Tuesday as traders took profits following the previous session's rally. Attention has now shifted to incoming US inflation data, with investors looking for clues about whether the Federal Reserve will raise interest rates in December.
Key Details
Spot gold fell 0.4% to $4,124.42 per ounce as of 06:18 GMT. Meanwhile, US gold futures for December delivery gained 0.5% to $4,133.
Kyle Rodda, senior financial market analyst at Capital.com, attributed the pullback to profit-taking after gold reached fresh session highs.
Geopolitical developments also remained in focus. US President Donald Trump said on Monday he would hold off on new military strikes against Iran for now, following appeals from regional countries, including Qatar. Oil prices extended their losses on Tuesday.
Richmond Fed President Tom Barkin said the central bank should approach monetary policy carefully, describing inflation as its biggest risk. CME FedWatch data showed traders pricing in an 84% probability of a December rate hike.
Market Reaction
Other precious metals also weakened. Silver slipped 0.3% to $53.22 per ounce, platinum held steady at $1,577.57, and palladium fell 0.2% to $1,039.16.
Why It Matters
Higher interest rates tend to weigh on gold because the metal offers no yield. A stronger-than-expected inflation reading could reinforce rate-hike expectations, potentially putting further pressure on bullion.
Investors are awaiting US CPI data later Tuesday, followed by producer price figures on Friday. Both reports could influence the dollar, Treasury yields, and gold's next move.
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Source: Reuters
Time: 11:00 PM EEST
