Gold prices fell on Tuesday as global stocks rose on improving risk appetite, while investors awaited a set of U.S. economic data later this week that could shape the outlook for U.S. interest rates.
Spot gold was down 0.5% at $5,040.47 an ounce by 0900 GMT. It hit an all-time high of $5,594.82 on January 29th.
U.S. gold futures for April delivery fell 0.3% to $5,062.60 an ounce.
ActivTrades analyst Ricardo Evangelista said: “The beginning of the week has been marked by a resurgence in risk appetite across financial markets, reflected in the rise in stock indexes, which is weighing on gold prices.”
Global stocks rose in Asian trade, led by gains extended in Tokyo following Prime Minister Sanae Takaichi’s decisive election victory over the weekend.
The US dollar rose 0.1%, making dollar-denominated products more expensive for holders of other currencies.
Investors will be scrutinizing a series of U.S. economic data releases scheduled for this week, including Wednesday’s January nonfarm jobs report and Friday’s inflation report, for clues on the Federal Reserve’s interest rate path.
Non-yielding bullion tends to do well in low interest rate environments.
Traders expect the Fed to cut interest rates twice this year, according to CME Group’s FedWatch tool.
“The outlook for gold prices remains bullish against a backdrop of geopolitical and economic uncertainties and the prospect of at least two Federal Reserve rate cuts in 2026, creating headwinds for the US dollar,” Evangelista said.
Meanwhile, White House economic adviser Kevin Hassett said Monday that U.S. job growth could be lower in coming months due to slower labor force growth and improved productivity.
Spot silver fell 1.4% to $82.20 an ounce after rising nearly 7% in the previous session.
Spot platinum fell 1.1% to $2,100.53 an ounce and palladium fell 0.6% to $1,730.
