Gold prices declined during Asian trading on Tuesday, easing from strong gains seen in the previous session. Precious metals remained under pressure as investors stayed cautious ahead of several key U.S. economic reports scheduled for release later this week.
Silver and platinum also moved lower. Both metals saw only limited support from an earlier drop in the U.S. dollar, which later stabilized during Asian hours.
Spot gold fell 0.7% to $5,022.19 per ounce, while April gold futures slipped the same amount to $5,044.79 per ounce by 00:34 ET (05:34 GMT).
Silver prices dropped more sharply, with spot silver down 2.1% to $80.93 per ounce. Spot platinum declined 1.8% to $2,084.85 per ounce.
Precious metals remain volatile as dip-buying stays cautious
Gold and other precious metals have experienced sharp price swings over the past week. Profit-taking and stretched market positioning pushed prices lower after hitting record highs. At the same time, uncertainty around U.S. monetary policy and a possible leadership change at the Federal Reserve added to market volatility.
Safe-haven demand has also been inconsistent, influenced by mixed developments in U.S.-Iran relations. While both sides reported some progress during weekend talks on Iran’s nuclear program, Washington on Monday issued a warning to U.S.-flagged vessels traveling through the Strait of Hormuz.
Although gold and other metals recovered part of their recent losses, prices remain well below the peaks recorded in late January. Traders appear reluctant to re-enter the market aggressively.
OCBC analysts noted that dip-buying has been selective rather than broad-based, suggesting investors remain highly sensitive to macroeconomic signals. They added that while ongoing de-dollarization trends supported gold over the past year, short-term price direction will still largely depend on the U.S. labor market and its impact on monetary policy expectations.
Key U.S. economic data in focus
Attention this week is firmly on a series of important U.S. economic indicators, which could provide clearer signals on economic momentum and the outlook for interest rates.
U.S. retail sales data for December is due later on Tuesday and is expected to shed light on consumer spending as labor market pressures increase. January nonfarm payrolls data will follow on Wednesday, while consumer price index inflation data is scheduled for release on Friday.
Both employment and inflation data are closely watched by the Federal Reserve, as they remain the central bank’s two primary considerations when setting interest rates.
Markets are also assessing the potential policy direction under Kevin Warsh, President Donald Trump’s nominee to succeed Jerome Powell as Federal Reserve chair when his term ends in May. Warsh is widely viewed as less dovish, and his nomination previously triggered heavy losses across metal markets.
Gold fell sharply from a record high near $5,600 per ounce, while silver retreated from levels above $120 per ounce. Prices have yet to fully recover from those declines.
