Bullion has held its position around $4,600 since Monday's trading session on geopolitical risks and the US Consumer Price Index (CPI) inflation data for December due to be published tonight.
At 9 am, gold was at $4,587, down 0.21% since it opened early Tuesday in Asian trading.
Meanwhile, market players were surprised by Fed Chairman Jerome Powell's speech on Sunday, which revealed that he was being investigated for criminal charges, raising major questions about the independence of US financial institutions.
Powell stated that the US Department of Justice has issued written legal notice to the central bank and threatened to prosecute it criminally over his testimony before the Senate Banking Committee in June 2025, regarding the $2.5 billion renovation of the Fed's headquarters in Washington.
However, Powell considered the accusations politically motivated and aimed at pressuring the Fed to cut interest rates.
In addition, ongoing tensions between Iran and the United States have the potential to boost demand for traditional safe haven assets such as gold.
US President Donald Trump has threatened to take strong action if Iranian authorities target civilians, while Tehran has warned the US and Israel not to interfere in the conflict.
On Monday, Trump announced that any country doing business with Iran would be subject to a 25% tariff on any trade deal involving the United States.
For now, market players will await the release of US Consumer Price Index (CPI) inflation data which is scheduled to be published at 9.30pm tonight (Tuesday).
The headline and core CPI are expected to register an annual increase of 2.7% in December. Any sign of rising inflation has the potential to strengthen US dollar (USD) inflows and in turn put pressure on commodity prices such as gold.
