The price of gold increased marginally on Tuesday, but it remained in a narrow range as traders braced themselves for significant inflation data as well as a number of important central bank meetings this week.

Spot gold added to $1,9657.88 per ounce, while gold futures advanced 0.1% to $1,971.75 per ounce.

In spite of conflicting signals on the global economy and U.S. monetary policy, the yellow metal has been unable to break out of a trading range during the previous three weeks.

With most attendees leaning toward a halt in the central bank's rate hiking cycle, markets were anticipating the completion of a two-day Fed meeting on Wednesday.

Investors, however, continued to be cautious of any hawkish shocks given that inflation is still rising over the Fed's 2% annual objective and that the U.S. labor market is still strong.

This week also sees the release of interest rate decisions from the Bank of Japan and the European Central Bank, with the latter predicted to raise rates while the BOJ is anticipated to retain its ultra-loose policy.