Gold slips as dollar firms with US CPI data in focus

Gold (XAU/USD) posted modest losses on Tuesday as the US dollar strengthened. The greenback's firm tone made the precious metal more expensive for buyers holding other currencies.

Market participants are squarely focused on upcoming US consumer price index data, which could shape expectations for Federal Reserve policy. A higher-than-expected inflation print might reinforce the dollar, adding further headwinds for gold.

Meanwhile, geopolitical tensions surrounding the Strait of Hormuz are contributing to uncertainty. The potential reopening of the critical shipping chokepoint and its impact on energy prices are also in the spotlight. Rising energy costs can stoke inflation fears, sometimes supporting gold, but for now dollar strength is capping the metal's upside.