Canada's main stock index declined Tuesday as investors braced for January inflation data. The S&P/TSX composite index dropped approximately 200 points or 0.6% to 32,867.23, reversing Friday's 1.9% gain that had pushed the average to 33,073.71. Markets were closed Monday for a holiday.

Precious metals prices fell with trading volumes thinned by Lunar New Year holidays in several Asian markets. Spot gold retreated while the U.S. dollar strengthened. Economists expect Canadian consumer prices to have risen 0.1% month-on-month and 2.4% year-over-year in January, with the data release drawing significant market attention.

U.S. markets showed mixed performance after returning from the holiday. The S&P 500 was little changed at 6,838.68 points after earlier falling as much as 0.9%, while the tech-heavy Nasdaq also traded flat at 22,538.58 points. The Dow Jones Industrial Average gained 0.1% to 49,569.22 points. Investors are digesting economic data and corporate earnings while awaiting Federal Reserve minutes due Wednesday for further clues on interest rate trajectories.