Gold has been trading above $4,000 since last week on high expectations of a Federal Reserve (Fed) rate cut after a speech by John Williams.
For now, the US Producer Price Index (PPI) and September Retail Sales reports will be in focus on Tuesday.
At 9.10 am, gold was at $4,056, down 0.20% since it opened early Monday in Asian trading.
New York Fed President John Williams said on Friday that the US central bank could still cut interest rates in the near term without compromising its inflation target.
The market is now pricing in a nearly 74% chance of a rate cut at the Fed's December meeting, up from 40% last week.
Meanwhile, other Fed officials have maintained a hawkish stance with Dallas Fed President Lorie Logan and Boston Fed President Susan Collins calling for a temporary hold on policy rates.
Traders will take more cues from mixed economic signals and the delayed release of key inflation data. US PPI inflation and Retail Sales data are due on Tuesday.
The PPI report is expected to show a 0.3% increase in September, while Retail Sales are expected to show a 0.4% increase in the same reporting period.
Any sign of warmer inflation could dampen expectations for a Fed rate cut. This, in turn, could push up the US Dollar (USD) and weigh on commodity prices, especially gold.
