BENGALURU Gold prices were stuck in a tight range on Tuesday, as investor focus turned to US inflation data due later this week, which could shed more light on the timing of the Federal Reserve's first interest rate cut this year.

Spot gold was little changed at US$2,170.68 per ounce as of 0712 GMT. US gold futures eased 0.3% to US$2,170.70 per ounce.

"We are lacking fresh catalysts, but for now, the market seems to be consolidating - taking the proverbial breath after a fairly aggressive run," said Kyle Rodda, a financial market analyst at Capital.com.

"The next move probably hinges on this week's PCE Index release. Evidence of further disinflation in the US, which would ease fears of prices accelerating or at least re-anchoring at a higher level, would be very bullish for gold."

Gold hit a record high last week, after Fed policymakers indicated that they still expected to reduce interest rates by three-quarters of a percentage point by 2024 end, despite recent high inflation readings.

Chicago Fed president Austan Goolsbee said on Monday at the Fed's policy meeting last week, that he pencilled in three rate cuts for this year.

Meanwhile, Fed governor Lisa Cook cautioned that the US central bank needs to proceed carefully, as it decides when to begin cutting rates.

Investors now look forward to US core personal consumption expenditure price index data due on Friday. The index was seen rising 0.3% in February, which would keep the annual pace at 2.8%.

Traders are pricing in a 70% probability that the Fed will begin cutting rates in June, according to the CME Group's FedWatch Tool. Lower interest rates reduce the opportunity cost of holding bullion.

The dollar index, meanwhile, slipped 0.3% against its rivals, making gold less expensive for other currency holders. 

Spot silver fell 0.6% to US$24.53 per ounce, platinum eased 0.1% to US$901.75 and palladium edged 0.1% higher to US$1,006.18.

  - Reuters