Gold prices slipped to near one-month lows as investors preferred the US dollar as a hedge against gloomy market sentiment.
The yellow metal dipped as low as $1,923 an ounce in the previous session, before rebounding to around $1,930 an ounce during the Asian session (time of writing).
Rating agency Moody's lowered its rating on 10 US banks which indirectly triggered new concerns for the banking sector.
However, investors prefer to get the US dollar as a safe-haven, causing gold trading to continue to sink to the lowest level on Tuesday.
However, the yellow metal rebounded slightly, after Chinese inflation data published in the Asian session pushed the greenback lower and major currencies rose following better-than-expected readings in July.
Meanwhile, Federal Reserve (Fed) President Patrick Harker was unexpectedly more dovish, saying the tightening is over and rates may be lowered next year.
The focus then shifts to the United States inflation data that will be released tomorrow night (Thursday) as a key indicator of the Fed's further policy.
