Gold Holds above $5,000 amid market caution ahead of U.S. jobs and inflation data

Gold

Gold declined on Tuesday but held steady above $5,000 per ounce, as investors remained cautious ahead of key U.S. jobs and inflation data due later this week, which are expected to provide clues on the Federal Reserve’s interest rate path.

Gold fell 0.7 percent in spot transactions to $5,029.49 per ounce. The precious metal had risen 2 percent on Monday as the dollar retreated to its lowest level in more than a week.

Gold hit a record high of $5,594.82 on January 29.

U.S. gold futures for April delivery fell 0.5 percent to $5,052.0.

Silver fell 2.1 percent in spot transactions to $81.64, after rising nearly seven percent in the previous session. It reached an all-time high of $121.64 on January 29.

Illya Spivak, head of macroeconomics at Tasty Live, said, “The Cold War and economic competition between the U.S. and China are unlikely to end anytime soon, probably for years to come, so we are in a situation where gold has some upside advantage.”

The dollar weakened on Tuesday, while the yen held on to its gains following Prime Minister Sanae Takaichi’s landslide election victory.

Meanwhile, White House economic adviser Kevin Hassett said on Monday that U.S. job gains could be lower in the coming months due to slowing labor force growth and rising productivity, a factor influencing the ongoing debate at the Federal Reserve.

Investors expect at least two interest rate cuts of 25 basis points each this year, with the first cut expected in June. Non-yielding gold tends to rise when interest rates are low.

Data expected this week include December retail sales, the Consumer Price Index, and the January nonfarm payroll report.

Platinum fell 2.1 percent in spot transactions to $2,084.09 per ounce, while palladium dropped 1.7 percent to $1,710.75