Gold (XAU/USD) pauses its rally on Tuesday after hitting a two-month high of $4,435 earlier in Asian trading hours. Price action remains driven by movements in Oil prices and their impact on the Federal Reserve’s (Fed) interest-rate outlook. The modest recovery comes as Oil prices pare their intraday gains. However, rising Oil prices are bringing inflation concerns back into focus and tilting market expectations toward a possible rate hike, with the CME FedWatch tool showing a 49% chance of an increase at the September meeting. Traders may wait for the US Consumer Price Index (CPI) data on Wednesday for fresh direction.