Gold ticked down on Tuesday as significant trades were stifled in anticipation of important signals on US inflation and Fed’s stance, on the other hand the latest robust in the greenback also impacted prices.

Spot gold muted at $2,171.90 per ounce, while gold futures dropped 0.2% to $2,172.45 per ounce.

Gold plunged from touched peaks the previous week following dovish hints from central banks which pushed traders to flock inti the greenback, driving the dollar index to touch one-month peak. Even though there was some profit-taking in the US dollar witnessed this week, it was still holding steady.

Gold is in a holding pattern in light of the largely awaited PCE price index figures, Fed’s favoured inflation measure scheduled to release this Friday. The figures are predicted on a broad scale to determine Fed’s stance regarding the interest rate trajectory.

Gold is projected to encounter some resistance in the short term, specifically if the stubborn inflation data indicated possible delay in Fed’s intention to trim interest rate in 2024.