Gold prices held near a two-month high on Tuesday, drawing support from lower US yields in the run-up to data that could shed more light on the US inflation picture.
Spot gold inched up 0.05% to $1,825.25 per ounce by 1334 GMT, around $2 shy of its Sept. 7 high. US gold futures for December delivery gained 0.03% at $1,828.60 per ounce.
"In the near-term, the market will be scrutinising economic data to find out if central banks will move quicker or later," said Quantitative Commodity Research analyst Peter Fertig.
"If the market sees that the consumer price index number is above expectations then the argument will certainly go that the Federal Reserve must now hike quicker," Fertig said. But "the Fed is not following a rule book," he added.
Key central banks last week indicated interest rates would remain low in the near term, boosting the appeal of non-yielding gold and helping the metal post its best week since late August.
However, a tight US labour market and the dislocation in global supply chains could result in a high reading for US consumer prices due on Wednesday.
Gold steadies as US bond yields retreat and dollar eases
Buoying gold on the day, yields on the 10-year Treasury notes slipped to 1.4584%.
"A rise through $1,825 (in gold) could trigger a technical pattern that could take gold back to the $2,000 zone," Jeffrey Halley, senior market analyst at OANDA, said in a note.
Elsewhere, spot silver fell 0.4% to $24.35 per ounce and platinum fell 0.1% to $1,054.50 per ounce, while palladium rose 0.4% to $2,078.50 per ounce.
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