Gold prices rose during trading Tuesday following yesterday's declines as investors await U.S. inflation data represented by the CPI, which will issue a statement next Thursday for more clarity about the size and depth of the Fed's rate cuts.

Markets expect a nearly 62% chance of a rate cut by the U.S. federal government in March, down from a nearly 90% probability before the new year.

Technically, Tagg Gold broke rising trend levels on the daily frame yesterday, and the precious metal is now trying to retest that trend, which could stand as a barrier to any further rise today.

Gold could begin declining from current prices towards 2010 and 1975 levels in the near term and 1850 levels in the medium term.

As long as gold trades at the lowest resistance level of $2090 an ounce.