India Gold price today: Gold falls, according to FXStreet data

Gold prices retreated on Tuesday as market participants cashed in after the precious metal's surge of more than 1% the day before, while awaiting US inflation data that could shed light on the Federal Reserve's policy direction. Spot gold slipped 0.6% to $4,114.48 per ounce, with US gold futures for December delivery edging 0.2% higher to $4,123.50.

Financial market analyst Kyle Rodda of Capital.com explained the price moves as merely "a bit of churn in the market" and attributed the easing back to profit-taking following the US session's highs. Rodda also noted that if the US avoids escalating tensions in the Middle East and oil prices stabilize, that could be favorable for gold due to its influence on the dollar, inflation, and interest rate expectations.

In other news, US President Donald Trump announced on Monday his intention to halt new military strikes against Iran for now, following appeals from regional countries, including Qatar's prime minister during White House talks. Oil prices declined on Tuesday, continuing their downward trend from the previous day. Furthermore, the Federal Reserve, in its assessment, should approach monetary policy "with caution" as it devises a response to inflation, which remains its most significant risk, according to Richmond Federal Reserve President Tom Barkin. He added that there is no "base case" for what should be done at the December meeting.

Traders currently view an 84% probability of the US Federal Reserve raising interest rates in December, as indicated by CME's FedWatch tool. Higher interest rates would increase the opportunity cost of holding non-yielding bullion, diminishing its attractiveness to investors. Investors now anticipate the release of the consumer price index report later on Tuesday, followed by producer price index data on Friday.

Silver prices fell 0.5% to $53.14 per ounce, platinum remained steady at $1,576.44, and palladium decreased 0.2% to $1,039.47.