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Gold prices were stuck in a narrow trading range on Tuesday as investors awaited more U.S. economic data this week that could shed light on the Federal Reserve's monetary policy outlook.

Spot gold was little changed at $2,024.57 per ounce, as of 0232 GMT. U.S. gold futures were mostly unchanged at $2,039.80.

"Obviously things are slowing down for the end of the year, but one thing to keep in mind will continue to be the outlook on Fed policy," said Ilya Spivak, head of global macro at Tastylive.

"Expectations are quite substantial at this point for rate cuts next year. It needs to be seen whether the market still has room to continue to move on that story in the near term."

Last week, Fed Chair Jerome Powell said the historic tightening of monetary policy is likely over as inflation falls faster than expected and with a discussion of cuts in borrowing costs coming "into view."

While some Fed officials have pushed back against surging market expectations of rate cuts, those remarks have done little to change investor sentiment.

Markets are still pricing in about a 69% chance of a Fed rate cut in March, according to CME FedWatch tool. Lower interest rates tend to support non-interest-bearing bullion.

Investors are awaiting a slew of U.S. economic data this week, including the November core personal consumption expenditure (PCE) index report, the Fed's preferred measure of underlying inflation, on Friday.

The Bank of Japan maintained ultra-loose monetary settings in a widely expected move, underscoring policymakers' preference to await more clues on whether wages will rise enough to keep inflation durably around its 2% target.

Meanwhile, oil prices extended gains as attacks by Yemen's Iran-aligned Houthi militants on ships in the Red Sea disrupted maritime trade and forced reroutes. [O/R]

Spot silver gained 0.3% to $23.84 per ounce, while platinum rose 0.4% to $948.73 and palladium eased 0.1% to $1,182.36.