Gold prices held near a two-month high on Tuesday, drawing support from lower US yields and a weaker dollar in the run-up to data could shed more light on the US inflation picture.
Spot gold edged up 0.05% to $1,825.11 per ounce by 0942 GMT, just about $2 shy of its Sept. 7 high. US gold futures for December delivery fell 0.1% to $1,825.80 per ounce.
"In the near-term, the market will be scrutinizing economic data to find out if central banks will move quicker or later," said Quantitative Commodity Research analyst Peter Fertig.
"If the market sees that the consumer price index number is above expectations then the argument will certainly go that the Federal Reserve must now hike quicker," Fertig said. But "the Fed is not following a rule book," he added.
Key central banks last week indicated interest rates would remain low in the near term, boosting the appeal of non-yielding gold and helping the metal post its best week since late August.
However, a tight US labour market and the dislocation in global supply chains could result in a high reading for US consumer prices due on Wednesday.
Buoying gold on the day, the US dollar slipped 0.1%, making the metal cheaper for holders of other currencies, and yields on the 10-year Treasury notes dipped to 1.4845%.
"A rise through $1,825 (in gold) could trigger a technical pattern that could take gold back to the $2,000 zone," Jeffrey Halley, senior market analyst at OANDA, said in a note.
Elsewhere, spot silver fell 0.2% to $24.40 per ounce. Platinum slipped 0.1%, to $1,054.51 per ounce. Palladium rose 0.8% to $2,088.13 per ounce.
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