BY COMFORT OGBONNA
Gold prices edged lower on Tuesday but remained comfortably above the closely watched $5,000-per-ounce mark, as investors stayed cautious ahead of a busy week of U.S. economic data that could provide clearer signals on the future path of U.S. interest rates.
With jobs and inflation figures due in the coming days, traders were reluctant to take aggressive positions after the precious metal’s recent surge to record levels.
Spot gold slipped 0.8% to $5,022.57 per ounce by 0524 GMT. The pullback followed a strong rally in the previous session, when prices climbed 2% as the U.S. dollar weakened to its lowest level in more than a week. Despite the latest decline, gold remains near historic territory after hitting a record high of $5,594.82 on January 29, underscoring the strength of investor demand amid ongoing economic and geopolitical uncertainty. U.S. gold futures for April delivery also eased, falling 0.7% to $5,044.80 per ounce.
Silver saw sharper losses, highlighting the heightened volatility in the broader precious metals complex. Spot silver dropped 2.8% to $81.08 an ounce, reversing part of its nearly 7% jump in the previous session. The metal has been particularly sensitive to speculative flows in recent weeks and remains well below its all-time high of $121.64 reached on January 29, though still elevated by historical standards.
Market analysts note that gold continues to enjoy an underlying supportive backdrop, even as short-term price action is driven by shifting expectations around U.S. monetary policy. Ilya Spivak, head of global macro at Tastylive, said gold retains a built-in upside bias over the broader horizon, with the key question being how much near-term Federal Reserve policy expectations will influence prices in the days ahead. He added that gold appears to be gravitating back toward the $5,000 level from both higher and lower ranges, while silver’s price swings reflect heavier speculative trading.
Currency movements also played a role in shaping market sentiment. The U.S. dollar extended its recent losses on Tuesday, while the Japanese yen held on to gains following the resounding election victory of Prime Minister Sanae Takaichi. A weaker dollar generally supports dollar-priced commodities like gold, making them cheaper for holders of other currencies, though that effect was partially offset by profit-taking after recent highs.
Investors are now focused on a packed slate of U.S. economic releases that could influence rate expectations. Retail sales data are due later Tuesday, followed by the closely watched nonfarm payrolls report on Wednesday and consumer inflation figures on Friday. Markets are currently pricing in at least two 25-basis-point interest rate cuts in 2026, with the first cut expected around June. Any surprises in the data could shift those expectations and trigger fresh volatility across financial markets.
Gold, which does not offer a yield, typically performs well in a low-interest-rate environment, as lower borrowing costs reduce the opportunity cost of holding the metal. Comments from U.S. officials added to the cautious mood, with White House economic adviser Kevin Hassett saying on Monday that job gains in the United States could slow in the coming months, a signal that may reinforce expectations for eventual policy easing.
Analysts say technical levels are now guiding near-term trading. Jigar Trivedi, a senior research analyst at IndusInd Securities, said $5,000 per ounce remains a key support level for gold, while $80 is an important reference point for silver. He noted that both metals are likely to remain range-bound intraday, with a slight negative bias driven by profit booking as investors remain wary following recent sharp price swings.
Other precious metals also moved lower. Spot platinum fell 2.3% to $2,075.18 per ounce, while palladium slipped 1.3% to $1,718.37, reflecting broader caution across the complex as markets brace for economic signals that could set the tone for the weeks ahead.