Gold edged up on Tuesday, monitoring a slight decline in the greenback while traders braced themselves for the release of significant US economic figures anticipated during this week, with gains are restrained by the possibility of longer interest rate hike.

Spot gold advanced by 0.4% to $2,029.53 per ounce, meanwhile gold futures ticked up by 0.4% to $2,030.70 per ounce.

Traders are currently looking for more hints regarding the status of the US economy on dashed hopes that Fed will trim interest rate anytime soon. Earlier in January, this had put a lot of pressure on gold prices, which had dropped to $2,000 per ounce.

Gold recovered from its 2024 drop, as the lingered conflicts in the Middle East promoted the buying of safe haven. Bullion was also buoyed by projections that Fed will take a more dovish stance this year.

Eyes are currently on the US GDP for the Q4 scheduled to release on Thursday, which is projected to indicate a slight slowdown in overall growth.

Another anticipated figure is the Fed’s preferred inflation measure, PCE scheduled to release on Friday, and it predicted to demonstrate that the inflation steadied on December.