Gold prices fell on Tuesday, after taking a breather yesterday, ahead of key data releases in the US, which provide cues on the chances of a near monetary policy tightening.

Gold prices fell more than 0.3% to $1,787.48 an ounce, after opening at $1,793.49, and hit a high of $1,794.83.

Gold closed higher by 0.3% yesterday, after closing lower by 0.4% on Friday due to a rise in the US T-bonds.

Now investors await a variety of important US data on the inflation levels in the US during August, which would help determine the likely path of tightening the US monetary policy. 

At 12:30 GMT, the US consumer price index is expected up by 5.3% y/y in August from 5.4% in July, and the monthly reading is expected at 0.4% from 0.5%.

As inflationary pressures mount on policymakers, bets for a policy tightening by the Federal Reserve before yearend mounts in a step that will lead to interest rate hikes later on.

Gold stocks at the SPDR ETF rose 2.04 metric tonnes yesterday, the first daily increase since July 29, with the total at 1,000.21 metric tonnes.

Euro rose in European trade against dollar away from three-week lows, on track for the first profit in three days and ahead of crucial US inflation data, which would provide clues for the future of US monetary policies.

EUR/USD rose 0.2% to 1.1830, with an intraday low at 1.1804, after shedding 0.1% yesterday, the second loss in a row, plumbing three-week lows at 1.1770.

The dollar index fell over 0.1% on Tuesday away from three-week highs at 92.88 against a basket of major rivals. 

Dollar lost ground on profit-taking while investors shun new positions until inflation data for August is revealed. 

As inflationary pressures mount on policymakers, bets for a policy tightening by the Federal Reserve before yearend mounts in a step that will lead to interest rate hikes later on.

Silver prices fell on Monday, as the US dollar held against most currencies, ahead of of the release of key economic data.

The market will turn to the release of the US consumer price index data on Tuesday, which shows inflation trends in the country.

Analysts see that the recent spike in inflation will lead the Federal Reserve to taper its monetary policy.

Fed Chairman Jerome Powell stated recently that the central bank might start reducing the size of its bond-buying program before the end of this year.

The dollar index fell against a basket of major currencies by less than 0.1% to 92.6 points as of 20:04 GMT, after hitting a high of 92.8 points and a low of 92.5 points.

As of 20:05 GMT, silver spot prices fell 0.5% to $23.7 an ounce, with a high at $23.8 and a low at $23.2.

The main US stock indices closed higher on Monday, after a 5-session losing streak, ahead of the release of key economic data.

The market will turn to the release of the US consumer price index data on Tuesday, which shows inflation trends in the country.

Fed Chairman Jerome Powell stated recently that the central bank might start reducing the size of its bond-buying program before the end of this year.

To the oil market, WTI crude October futures rose rose 1.1% or 73 cents, and closed at $70.45 a barrel.

Brent November futures rose 0.8% or 59 cents, and closed at $73.51 a barrel.

As for stocks, Dow Jones rose 0.7% or 262 points, and closed at 34,869, and hit a day high of 34,939, and a low of 34,665.

S&P 500 rose 0.2% or 10 points to 4,468, after hitting a high of 4,492 and a low of 4,445.

Nasdaq fell 0.1% or 10 points to 15,105 points, with a high of 15,215 and a low of 15,030.