Gold continues to decline even though inflationary pressures persist and producer prices rose more than expected.
The US Department of Labor reported that US PPI gained 1.0% in January, much higher than the expected 0.5%.
And during the year, basic producer prices increased by 9.7%.
This data helped the yellow metal rise from session lows, however, the market continues to experience strong selling pressure after hitting a new three-month high on Monday.
Inflation also peaked in four decades, with core CPI rising 0.8% last month.
Strategist Adam Baton said this is another dose of "hot inflation data", and since inflation cannot be stopped yet, companies are forced to raise prices.
At the moment, gold is already out of the triangle, and so far has falsely updated the November 2021 high, which is important for sellers.
Markets will closely watch comments from the US Federal Reserve, especially if it's about increases in interest rates.
Fed officials continue to argue when and how to raise rates, but on Monday, St. Louis Fed President James Bullard called for a faster hike in rates. Other officials were less inclined to raise half a point, saying that it might cause problems.