The yellow metal has been trading weak since the start of the week as investors are now placing high focus on this week's Federal Reserve (Fed) meeting, placing confidence that the central bank will ease its policy early Thursday morning.
At 9 am, gold prices were at $4,194, up a slight 0.10% since they opened early Tuesday in Asian trading.
The latest weaker economic data, including a weaker private payrolls report and signs of cooling in the labor market, have continued to reinforce expectations that monetary policy will be eased soon.
The delayed release of the US core Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation gauge, also showed a modest monthly increase, while the annual rate continued to decline.
However, gold's gains have been limited by mixed messages from Fed officials in recent weeks. Some have warned against cutting rates too early.
Currently, data from CME FedWatch shows an 87.4% probability of a rate cut at the December meeting.
This makes the policy outlook somewhat ambiguous and increases the risk of a sudden change in stance from the Fed.
Traders are now focusing on Wednesday's policy decision and Chairman Jerome Powell's press conference for clearer confirmation of whether the easing cycle is truly beginning.
