The value of gold has continued to trade at a high position above $4,000 since last week due to strong expectations of a Federal Reserve (Fed) rate cut following remarks from official John Williams.
Currently, the US Producer Price Index (PPI) and Retail Sales reports for September will be the focus on Tuesday.
At 9:10 AM, gold prices stood at $4,056, down 0.20% since opening early Monday trading in the Asian session.
New York Fed President John Williams said on Friday that the US central bank could still reduce interest rates in the near term without compromising its inflation goals.
The market is now pricing in nearly a 74% chance of a rate cut at the Fed meeting in December, up from 40% last week.
Meanwhile, other Fed officials maintain a hawkish stance, with Dallas Fed President Lorie Logan and Boston Fed President Susan Collins urging a pause on the policy rate for a while.
Traders will look for more clues from mixed economic signals and delayed releases of key inflation data. US PPI inflation and Retail Sales data will be released on Tuesday.
The PPI report is expected to show a 0.3% increase in September, while Retail Sales are forecasted to rise by 0.4% during the same period.
Any signs of hotter inflation could weaken hopes for a Fed rate cut. This, in turn, could boost the US Dollar (USD) and weigh on commodity prices, especially gold.
