Feb 6 (Reuters) - Gold prices were flat on Tuesday, languishing near a more than one-week low hit in the previous session, as the dollar held firm on growing expectations the Federal Reserve will not be more aggressive with rate cuts this year.
Spot gold was steady at $2,025.53 per ounce, as of 1218 GMT, after hitting its lowest since Jan. 25 in the previous session.
U.S. gold futures fell 0.1% to $2,041.60 per ounce.
"Gold bulls have been slammed by stronger-than-expected US economic data, and have been forced to revisit lower levels as markets continue to lower their bets for a Fed rate cut in March," said Han Tan, chief market analyst at Exinity Group.
"Bullion should rise as that first Fed rate cut looms closer. However, if the Fed is forced to delay the start of its policy pivot, that should prompt the precious metal to unwind more of its recent gains in the interim."
The U.S. dollar rose 0.1% to hover near its highest level in three months and making gold more expensive for other currency holders, while yields on benchmark 10-year Treasury notes held above 4%.
Two Fed members said inflation could continue to fall amid strong economy and the U.S. central bank could take its time before deciding to lower interest rates.
The Fed can be "prudent" in deciding when to cut its benchmark interest rate, with a strong economy allowing central bankers time to build confidence that inflation will fall further, Fed Chair Jerome Powell said in an interview.
According to the CME Fed Watch, opens new tab Tool, traders now expect about a 65% chance of a U.S. rate cut in May. Lower interest rates boost non-yielding bullion's appeal.
Investors are awaiting remarks from at least eight Fed speakers, who are due to speak this week, for further clues on the timing of rate cuts.
Spot silver fell 0.4% to $22.27 per ounce, palladium was down 1.5% to $934.25 and platinum lost 0.5% to $892.38.
Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Mrigank Dhaniwala and Krishna Chandra Eluri
