Gold edged lower on Tuesday as a stabilizing dollar and persistent rate hike expectations weighed on the precious metal, according to analysts at Tickmill.

While weaker-than-expected U.S. inflation data provided some temporary relief for bullion, the broader macroeconomic backdrop remains challenging. The dollar steadied after recent volatility, and benchmark bond yields held firm, reducing the appeal of non-yielding assets like Gold.

Tickmill noted that continuing rate hike expectations from the Federal Reserve are likely to keep the metal under pressure in the near term. Traders are now focusing on upcoming economic indicators for clues on the pace of monetary tightening.

The combination of a resilient greenback and elevated yields suggests that any upside in gold prices may be limited unless inflation data shows a more decisive cooling trend.