Gold inched down on Tuesday following a robust surge in the previous sessions, the strengthening dollar stressed prices before the release of the coming economic figures and the anticipated hints from Fed.

Spot gold dipped 0.3% to $2,049.41 per ounce; meanwhile gold futures slipped 0.3% to $2,052.90 per ounce.

A rise in demand for safe havens during recent sessions, coupled with a heightened level of military action in the Middle East, buoyed the yellow metal. Bullion prices also profited from a weaker dollar.

However, the dollar strengthened on Tuesday as investors braced themselves for speeches by Fed officials this week, which are anticipated to provide additional hints about when the central bank may start reducing interest rates in 2024.

In anticipation of a speech by Fed Governor Christopher Waller later on Tuesday, demand for the dollar increased, sending the dollar index up 0.5% on Tuesday.

His remarks will be closely monitored to see the possibility of a spring rate drop, given that the December consumer and producer inflation figures provided markets with a mixed bag of signals.