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Gold traded in a tight range on Tuesday as investors refrained from taking big positions ahead of U.S. economic data that could influence the Federal Reserve's rate-hike strategy.

Spot gold was up 0.1% at $1,842.37 per ounce, as of 0245 GMT, trading in a $4 range. U.S. gold futures firmed 0.1% to $1,852.10.

High interest rates discourage investors from placing money in non-yielding assets such as gold.

"Decline in gold prices has somewhat stabilised as markets take stock on whether the hawkish repricing of the Fed may have gone a little too fast," said OCBC FX strategist Christopher Wong.

Gold prices hit their highest since April 2022 early this month, but have since lost about $120 after a slew of economic data showed signs of a resilient U.S. economy and a tight labour market, fuelling concerns that interest rates would stay higher for longer.

Minutes of the Fed's latest policy meeting will be released on Wednesday. Money markets expect the Fed to raise benchmark rates above 5% by May, with a peak in rates seen at 5.3% in July.

"Further hawkish repricing of the Fed will need to find a new catalyst and that puts focus on core PCE... an upside print could see USD momentum gather traction and put pressure on gold, but a downside surprise to data should see a pause in hawkish Fed repricing and gold can recover," OCBC's Wong said.

The U.S. core personal consumption expenditure (PCE) data, the Fed's preferred inflation measure, and gross domestic product numbers due later this week are also on investors' radar.

The dollar index firmed 0.1%, making greenback-priced bullion more expensive for buyers holding other currencies. [USD/]

Silver edged up 0.1% to $21.76 per ounce, platinum rose 0.2% to $928.26 and palladium was 0.2% higher at $1,507.90. All three metals were off near one-week highs hit on Monday.