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Gold prices drifted lower on Tuesday as the U.S. dollar and Treasury yields climbed, with investors awaiting a key consumer inflation report for more cues on whether the Federal Reserve will hike interest rates once again this year.

FUNDAMENTALS

* Spot gold ticked down 0.1% to $1,914.61 per ounce by 0056 GMT, while U.S. gold futures fell 0.2% to $1,933.30.

* The dollar hit a 10-month high, while benchmark 10-year Treasury yields continued their ascent to a fresh 16-year peak. [USD/] [US/]

* Wall Street eked out a gain in Monday's choppy market as investors continued to digest last week's central bank indications that interest rates would stay higher for longer. [MKTS/GLOB]

* Forecasts published on Wednesday showed that a majority of Fed policymakers see one more rate hike in the next three months, but investors continue to price in only about a 50% chance of further tightening in 2023.

* Higher interest rates weigh on non-interest-paying bullion, which is priced in dollars.

* The European Central Bank's record high deposit rate could help cut inflation to 2%, ECB President Christine Lagarde said on Monday, repeating the bank's guidance that neither promises nor rules out further rate hikes.

* German business morale deteriorated slightly in September, falling for the fifth month in a row and underlining recession fears in the euro zone's largest economy, a survey showed.

* A U.S. government shutdown would harm the country's credit, rating agency Moody's said.

* The personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, will be out on Sept. 29.

* SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.1% on Monday to their lowest level since January 2020. [GOL/ETF]

* Spot silver fell 0.1% to $23.09 per ounce, platinum shed 0.3% to $908.69 and palladium slipped 0.1% to $1,228.31.

DATA/EVENTS (GMT)

1400 US Consumer Confidence Sept

1400 US New Home Sales-Units Sept