Gold prices fell slightly in Asian trade on Tuesday but remained close to recent peaks as traders awaited key U.S. inflation data for more clues on the Federal Reserve's plans to begin cutting interest rates.

- The yellow metal benefited from safe-haven buying after a significant risk-off move across markets last week, driven by concerns over slowing economic growth.

- Spot prices came close to reaching a record high on Friday, but then pulled back as the dollar advanced of this week's inflation reading.

- Spot gold fell 0.1% to $2,502.07 an ounce, while gold futures expiring in December fell 0.1% to $2,531.0 an ounce.

- This week’s focus is primarily on the consumer price index inflation data, due on Wednesday, for more signals on the U.S. economy.

- Any signs of cooling inflation will likely increase expectations of lower interest rates in the coming months, a positive scenario for gold.

- Wednesday’s inflation reading comes just a week before a Federal Reserve meeting, where the central bank is widely expected to cut interest rates by 25 basis points.

- Expectations of the September rate cut were also a key driver of gold's recent gains, as this cut is likely to initiate an easing cycle by the Fed.

- Meanwhile, other precious metals fell on Tuesday. Platinum futures dropped 0.1% to $945.0 an ounce, while silver futures fell 0.2% to $28.590 an ounce.

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