Gold prices dipped slightly in early Asian trade on Tuesday as investors braced for the release of US inflation data later in the day. Spot gold fell 0.3% to US$4,128.48 per ounce by 0024 GMT, reversing some of the previous session's gains. US gold futures for December delivery, however, rose 0.6% to US$4,137.60.
Geopolitical tensions also influenced market sentiment, with US President Donald Trump announcing plans to hold off on new military strikes against Iran following regional appeals. Meanwhile, Brent crude futures continued their decline, losing more than US$7 a barrel to hit their lowest since late August.
Richmond Federal Reserve president Tom Barkin cautioned that the US central bank should approach monetary policy with care, noting that inflation remains the greatest risk. Traders currently see an 84% chance of a Fed rate hike in December, according to CME's FedWatch tool. Higher interest rates typically reduce the appeal of non-yielding bullion like gold.
The consumer price index (CPI) report is set for release at 1330 GMT, with producer price index (PPI) data following on Friday. Elsewhere, some Bank of Japan policymakers advocated for accelerating rate hikes as underlying inflation reached the central bank's 2% target.
Other precious metals also saw declines, with spot silver sliding 0.3% to US$53.25 per ounce, platinum dipping 0.3% to US$1,572.28, and palladium dropping 0.9% to US$1,032.21.