Gold prices slipped to a more than two-week low on Tuesday, weighed down by an uptick in the dollar ahead of widely watched US inflation print that could provide more clarity on the Federal Reserve's interest rate trajectory, reports Reuters.
Spot gold was down 0.5 per cent at $1,911.70 per ounce by 1133 GMT, its lowest since August 25. US gold futures dipped 0.6 per cent to $1,934.90.
The dollar gained 0.3 per cent against its rivals ahead of US consumer price index (CPI) data due on Wednesday, making gold more expensive for other currency holders.
The CPI data could exceed forecasts as energy costs have risen, said Quantitative Commodity Research analyst Peter Fertig, which "would dampen a little bit the speculation that the Fed is done for this year with interest rate hikes."
Headline US inflation climbed 0.6 per cent in August, according to a Reuters poll, compared with a 0.2 per cent rise in the prior month.
Higher interest rates tend to dull non-yielding bullion's shine, with traders currently betting on a roughly 40 per cent chance of a rate hike in November after a widely expected pause by the Fed next week, according to the CME FedWatch tool.
Americans' overall views on inflation were little changed in August, the New York Fed reported Monday.
Also on the radar, a rate decision by the European Central Bank is due on Thursday, with markets slowly increasing their bets on an additional hike.
"Europe's economy is definitely facing a lot of challenges so eventually safe-haven demand will emerge if investors see that the currency is going to be under pressure," said Harshal Barot, a senior consultant at Metals Focus.
Elsewhere, spot silver fell about 1 per cent to $22.85 per ounce, platinum slipped 0.7 per cent to $891.56 and palladium lost 0.5 per cent to $1,211.78.
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