Gold prices remain rangebound on Tuesday, staying under pressure from a stronger dollar as traders brace for U.S. inflation figures later today that are expected to guide the Federal Reserve’s interest rate policy.

The precious metal has been stuck between $2,000 and $2,050 an ounce over the past week, with investors steadily scaling back bets on early Fed rate cuts this year. Several Fed officials have lately warned against premature policy easing given stubborn inflation.

This propelled the dollar to three-month highs and kept gold prices in check. Spot gold (XAU/USD) steadied at $2,024.88 an ounce by 08:20 GMT on Tuesday morning.

The key data release later today is forecast to show U.S. consumer price inflation eased in January but held well above the Fed’s 2% target, offering little incentive for policy loosening.

Markets have cut expectations for rate reductions in March and May. Bets on a 25 basis point cut in June now stand at just 45%, per CME Fedwatch numbers. Fading bets on looser policy poses challenges for non-yielding gold.

Further dollar strength on the back of sticky inflation could spur a retest of the key $2,000 technical level.