Gold prices fell during these moments of trading, Tuesday, but they are still close to record high levels, as traders await the main inflation report in the United States, which may provide more clarity on when the US Federal Reserve may start cutting interest rates.

“After the big rally in gold prices, some relief is needed in the near term,” said IG analyst Ye Jun Rong.

“The progress in US inflation stalled somewhat in the January reading, but comments from policymakers seem to suggest they are waiting for more data before starting to cut interest rates,” Rong added.

The analyst also noted that any higher-than-expected upside surprise in February inflation data would likely lead to some pullback in gold prices in the near term.

The US Consumer Price Index for February, due at 15:30 Mecca time, is likely to rise 0.4% during the month, while the annual pace of increase is expected to remain steady at 3.1%.

Traders are pricing in three to four bps (25 basis points) of U.S. rate cuts, with a 55.5% chance of the first cut at the June meeting, according to the Investing Saudi Arabia U.S. Rate Watch tool. Lower interest rates boost the appeal of the non-yielding yellow metal.

The US Treasury is also scheduled to sell $39 billion in 10-year notes later today.

The bond auction is secondary to interest rate expectations, with the main focus still on consumer and producer price figures this week, but if there is not much demand for bonds, it could push yields higher, reducing the appeal of gold, said Tim Waterer, chief market analyst at KCM Trade. This comes at a time when the dollar index is stabilizing.

Gold at settlement yesterday

Gold futures prices rose at the settlement of trading on Monday, after achieving gains for three consecutive weeks.

At settlement, gold futures for April delivery rose 0.15%, or $3.1, to a seventh consecutive record high of $2,188.6 per ounce.

Gold and dollar now

Gold futures are now down 0.32% at $2,181 an ounce.

Spot gold futures fell 0.33% to $2,175 an ounce, after rising for nine consecutive sessions, hitting a record high of $2,195 on Friday.

On the other hand, the US dollar index is stable at 102.450 points.

Other minerals

Spot platinum fell 0.3 percent to $930 an ounce, palladium fell 0.1 percent to $1,029.38, while silver rose 0.1 percent to $24.45.