Gold traded in a narrow range on Tuesday, staying under pressure from the dollar as investors braced themselves ahead of inflation figures that is anticipated to influence the Fed's interest rate decisions.

Spot gold muted at $2,020.06 per ounce, while gold futures steadied at $2,033.45 per ounce.

Gold had dipped back into a trading range of $2,000 to $2,050 per ounce, as traders hopes for an early interest cut by Fed was dashed.

A number of Fed speakers also cautioned the previous week that, due to concerns over stubborn inflation, the bank was not in a rush to trim interest rates. This pushed the green back to surge and touched three-month peak, which put pressure on gold.

Eyes are today on CPI figures scheduled to release later during the day, that is projected to show that inflation has eased for January.

Figures are predicted to stay above the 2% Fed’s target, giving the central bank a room to start trimming interest rates soon.