Gold slips as dollar strengthens, ounce priced at $4,164.45

Gold prices fell on Tuesday, pressured by a stronger dollar as investors awaited US inflation data for fresh signals on the Federal Reserve's interest rate path.

Spot gold dropped 0.2 percent to $4,164.45 per ounce, after hitting a one-week high in the previous session. US gold futures for December delivery slipped 0.1 percent to $4,187.90.

The dollar remained near its 18-month high reached in the previous session, making dollar-priced metals more expensive for holders of other currencies.

According to Reuters, Kyle Rodda, senior financial market analyst at Capital.com, said the upcoming consumer price index data would be crucial for gold's short-term direction. He noted that if inflation comes in higher than expected, especially in the core reading, it could slightly boost expectations for a rate hike in October, which may put further pressure on gold.

CME Group's FedWatch tool shows traders see a 21 percent chance of a US rate hike this month, compared to an 88 percent probability for a hike in December.

Among other precious metals, spot silver fell 0.5 percent to $60.01, platinum slipped 0.2 percent to $1,682.47, and palladium dropped 0.5 percent to $1,137.69.