At 12:30 GMT, the US economy released its reading for the consumer price index, which rose by 0.3% in August, lower than forecasts of 0.4%, and lower than the previous reading of 0.5%. 

The core reading (excluding food and fuel prices) rose by 0.1%, lower than forecasts of 0.3%, and lower than the previous reading of 0.3%. This data is negative for the US dollar.

Oil prices continued to rise as the US market opened on Tuesday, rising for the third day in a row, and hit a 6-week high, amid concerns over the return of the US production in the Gulf of Mexico to its normal levels, especially as the new tropical storm Nicolas approaches the region, and ahead of preliminary data on the US crude inventories.

US crude rose 0.7% to the highest since August 3 at $71.12 a barrel, after opening at $70.61, and hit a low at $70.53, and Brent crude rose 0.8% to the highest since August 2 at $74.20 a barrel, after opening at $73.62, and hit a low at $73.51.

The US crude gained 1.5% yesterday, and Brent crude rose 1.1%, in the second straight gain, due to concerns about US supplies.

Producers in the US Gulf of Mexico have again begun evacuating workers from offshore platforms ahead of Tropical Storm Nicholas, which is expected to turn into a hurricane over the next few days.

Nearly 40% of production in the Gulf of Mexico remained idle as of today, two weeks after Hurricane Ida swept through the region, bringing strong winds and rains, disrupting about 95% of the region's production.

Royal Dutch Shell canceled some export shipments in the Gulf of Mexico on Thursday due to damages to offshore facilities from Hurricane Ida.

The Gulf of Mexico encompasses 17% of the US total production, which was 11.5 million bpd before Hurricane Ida, and is currently around 11 million barrels per day.

The American Petroleum Institute will release its preliminary report on the US crude inventories later today, and the US Energy Information Administration will release the official data on Wednesday.

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.