Gold prices fell on Tuesday on a rise in the dollar while investors awaited U.S. economic data to gauge the Federal Reserve's interest rate strategy.

Spot gold was down 0.4% to $1,834.32 per ounce by 1134 GMT. U.S. gold futures eased 0.4% to $1,843.30.

The dollar index hovered around its highest in six weeks, making dollar-priced gold more expensive for buyers holding other currencies.

"Gold's primary driver remains the shifting expectations surrounding the Fed's next policy moves, with perhaps more clues to be found within the upcoming FOMC minutes release," said Han Tan, chief market analyst at Exinity.

"Should the U.S. economy continue defying the Fed's rate hikes, that could invite a higher peak for U.S. rates, much to the chagrin of bullion bulls."

The focus this week will be on the release of the Federal Open Market Committee's January meeting minutes on Wednesday, followed by U.S. gross domestic product data on Thursday and Friday's core PCE price index.

Gold prices hit their highest since April 2022 early this month at $1,959.60, but have since lost around $130 after U.S. data showed signs of a resilient economy.

"As investors price in the renewed hawkishness of the Federal Reserve, the dollar is likely to continue to strengthen, meaning there may be further downside for gold prices," senior analyst Ricardo Evangelista of ActivTrades wrote in a note.

High interest rates discourage investors from placing money in non-yielding assets such as gold.

Meanwhile, a recovery in euro zone business activity gathered steam this month, a survey showed, providing the latest evidence the currency union could escape a recession.

Britain, France and the United States are also due to publish flash February PMI data on Tuesday, with traders watching for signs of tighter monetary policy taking a toll on business activity.

In other metals, silver was up 0.2% to $21.78 per ounce, platinum added 0.7% to $933.41 while palladium advanced 0.2% to $1,513.98.

(Reporting by Seher Dareen and Rahul Paswan in Bengaluru; editing by Barbara Lewis and Jason Neely)