Gold prices experienced a decline on Tuesday, pulling back from the two-week high reached during the previous session, as investors eagerly await the release of the Federal Reserve's June meeting minutes for insights on the monetary policy direction under new chair Kevin Warsh.
The spot gold price dropped 0.4% to $4,148.59 per ounce by 00:43 GMT, while U.S. gold futures for August delivery fell 0.2% to $4,160.20.
The Federal Open Market Committee's meeting minutes from June 16-17 are set to be released on Wednesday.
In June, the U.S. service sector activity slowed as the initial boost from companies rushing orders amid the Middle East conflict faded. However, employment rebounded after three months of decline, indicating continued stability in the labor market.
Gold prices have plunged over 25% from their record highs earlier this year amid concerns over inflation driven by the U.S.-Israel conflict with Iran, strengthening the dollar and boosting expectations of interest rate hikes this year.
However, the precious metal reached a two-week high on Monday, as a ceasefire agreement between the U.S. and Iran eased some inflation fears, and weaker-than-expected U.S. job data last week led markets to lower their near-term rate hike expectations.
The CME Group's FedWatch tool suggests traders now see a nearly 57% chance of a rate hike in September, down from over 60% before the data release.
Among other precious metals, spot silver dropped 0.8% to $61.57 per ounce, platinum fell 0.8% to $1,618.78, and palladium slipped 0.4% to $1,264.11.