Tuesday's gold prices saw little movement, with the yellow metal recovering from a steep decline from record highs as investors braced themselves for important U.S. inflation data and Feds stance on interest rate.

Spot gold edged up by 0.2% to $1,986.24 per ounce, meanwhile gold futures added 0.4% to $2,001.40 per ounce.

This week, gold fell below the highly sought-after $2,000 per ounce threshold as investors doubted the Fed's prediction to lower interest rates as early as March 2024. Earlier this month, these wagers had momentarily propelled gold to all-time highs of more than $2,100 an ounce.

However, gold excessively dipped from all-time highs during the past week as investors wagered that the Fed will have more room to raise rates for an extended period of time due to evidence of strength in the US economy.

In addition to strengthening the dollar, this notion bolstered risk-taking, which put pressure on gold prices.

Now, all eyes were on the US CPI inflation figures that was scheduled for release later on Tuesday. The inflation rate is predicted to have somewhat decreased in November, but it is still predicted to be far higher than the Federal Reserve's 2% annual target.