- Gold prices moved little in Asian trade on Tuesday, steadying after falling from record highs as traders priced in the prospect of smaller interest rate cuts by the Federal Reserve. 

- The focus this week was on more cues from the Fed and key inflation data likely to factor into the outlook for rates. 

- Gold prices had surged to record highs in September after the Fed cut rates by 50 basis points and launched an easing cycle. But doubts over the central bank’s future pace of rate cuts saw the yellow metal retreat. 

- Strength in the dollar- which hit seven-week highs in recent sessions- also weighed on metal markets.

- Spot gold steadied at $2,642.86 an ounce, while gold futures expiring in December fell 0.2% to $2,661.70 an ounce. 

- The yellow metal sank from record highs over the past week, with the focus now turning to more cues on interest rates.

- A bulk of gold’s losses came after stronger-than-expected nonfarm payrolls data on Friday saw traders drastically scale back expectations for future rate cuts.

- Traders were pricing in an around 81% chance for a 25 bps cut in November, and a 19% chance for a 19% cut, CME Fedwatch showed. 

- Focus this week was on the Fed’s September meeting minutes for more insight into its outlook on future rate cuts, given that the bank largely forecasts a data-driven approach.

- Consumer price index data due later this week is set to provide more cues on inflation, while also factoring into the Fed’s outlook. 

- While lower interest rates bode well for metal markets, a slower pace of cuts makes non-yielding assets appear less attractive in the near term.

- Other precious metal prices also fell on Tuesday. Platinum futures fell 0.8% to $977.50 an ounce, while silver futures fell 1.1% to $31.660 an ounce.

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