Gold prices held near two-month lows on Tuesday amid rising inflation concerns and hawkish Fed bets.
Spot gold dipped 0.4 percent to $1,810.63 per ounce, while U.S. gold futures were down 0.4 percent at $1,817.25.
The dollar regained traction and was set for its first monthly gain since September on expectations that the Federal Reserve will raise rates more than initially expected.
U.S. Fed Governor Philip Jefferson said Monday that inflation for services in the United States remained "stubbornly high" and he was under "no illusion" that inflation would return quickly to the Fed's target.
Meanwhile, data showed French and Spanish inflation rose more than expected in February, increasing pressure on the European Central Bank to keep raising rates.
The inflation rate in France rose to 7.2 percent in February year-on-year, up from 7.0 percent in January as a result of rising food prices, preliminary data showed.
Spanish consumer price inflation increased an annual 6.1 percent in February, accelerating from 5.9 percent during the 12 months to January.
Christine Lagarde, President of the European Central Bank (ECB), said in an interview that the central bank is data dependent and will decide on rate hikes later after a 50 basis points hike in March.
Reports on consumer confidence and Chicago-area business activity may attract attention investor attention in the New York session.
