Gold prices rose during these moments of trading, today, Tuesday, again above the level of $2,000 per ounce, after reaching their lowest levels in three weeks in the previous session with the decline of the dollar.
While investors await key US inflation data and key central banks' monetary policy meetings for clues on interest rates.
An upbeat US jobs report last week dampened hopes that the Federal Reserve might cut interest rates next March.
Attention is now turning to the US Consumer Price Index report scheduled to be released at 16:30 Mecca time.
Economists polled by Reuters expect headline U.S. inflation to remain flat for November and core inflation to remain steady at a 4% annual pace - well above the Fed's 2% target.
The Federal Open Market Committee's two-day monetary policy meeting will end on Wednesday with an interest rate decision and the release of a summary of economic forecasts.
Goldman Sachs analysts expect interest rates to be cut twice by the Federal Reserve in 2024, to reach 4.875% by the end of the year, starting during the third quarter of next year, instead of previous expectations that referred to the fourth quarter.
Traders widely expect the Fed to leave interest rates unchanged at 5.25%-5.50% this week and expect a roughly 77% chance of a rate cut in May, according to the Fed's rate tracker.
Low interest rates tend to support non-interest bearing bullion.
The European Central Bank and the Bank of England are scheduled to hold policy meetings on Thursday.
Spot gold may retest support at $1,977 per ounce, and a break below could open the way toward the $1,944-$1,962 range, according to Reuters technical analyst Wang Tao.
Gold at settlement yesterday
Gold futures prices turned lower at the settlement of trading yesterday, Monday, with the rise in the dollar index and US bond yields.
Upon settlement, gold futures prices for February delivery fell nearly 1%, or $20.8, at $1,993.7 an ounce, the lowest end-of-session level since mid-November.
Gold and dollar now
Gold futures rise 0.43% to $2,002 an ounce.
Meanwhile, spot gold contracts rose by 0.27% to $1,987 per ounce.
On the other hand, the dollar index fell by 0.21% to 103.489 points.
Other metals
Silver rose 0.5 percent to $22.90 per ounce, while platinum gained 0.4 percent to $913.70, and palladium rose 0.7 percent to $963.48 per ounce.
The dollar fell more than 0.2% against its rivals, making gold less expensive for holders of other currencies.
The Fed may not be so aggressive with interest rate cuts that are in line with current dovish market expectations, said Kelvin Wong, a senior analyst at OANDA. Therefore, this led some profit-taking speculators and short-term investors to speculate on gold.
