Investing.com– Gold prices fell slightly in Asian trade on Tuesday but remained close to recent peaks as traders awaited key U.S. inflation data for more cues on the Federal Reserve’s plans to begin cutting interest rates.

The yellow metal benefited from safe haven buying following a severe risk-off move across markets last week, which was triggered by concerns over slowing economic growth. 

Spot prices came within spitting distance of a record high on Friday, but then pulled back as the advanced ahead of this week’s inflation reading.

fell 0.1% to $2,502.07 an ounce, while expiring in December fell 0.1% to $2,531.0 an ounce by 00:22 ET (04:22 GMT). 

Gold steady with Inflation, Fed meeting in sight 

Focus this week is squarely on inflation data, due on Wednesday, for more cues on the U.S. economy. 

Any signs of cooling inflation are likely to spur increased bets on lower interest rates in the coming months- a scenario that bodes well for gold. 

Wednesday’s inflation reading comes just a week before a , where the central bank is widely expected to cut interest rates by 25 basis points.

Expectations of the September cut were also a key driver of gold’s recent gains, given that the cut is likely to kick off an easing cycle by the Fed.

Lower rates bode well for gold, given that they reduce the opportunity cost of investing in the yellow metal.

Other precious metals fell on Tuesday, having largely lagged gold in recent weeks. fell 0.1% to $945.0 an ounce, while fell 0.2% to $28.590 an ounce. 

Copper edges lower, Chinese trade data brings little cheer 

Among industrial metals, prices retreated on Tuesday, taking little support from data that showed some economic resilience in top importer China. 

China’s unexpectedly grew in August on strength in the country’s . But laggard offset cheer over this trend, given that they signaled sluggish demand in the country.

China’s overall copper imports shrank 12.3% year-on-year in August, although they were still in positive territory for the first eight months of the year. 

The soft import data came following a string of weak readings on China’s economy over the past week, which raised concerns over slowing growth in the world’s biggest copper importer.

The data, coupled with a broader risk-off move in global markets, saw copper nursing steep losses over the past week.