Gold slipped nearly 1% to around $5,010 per ounce on Tuesday, as investors took profits after the metal hit its highest level in more than a week in the previous session. Attention has now turned to key US economic data due this week, particularly the nonfarm payrolls report and inflation figures, which could shape expectations for the future path of monetary policy.
Futures markets currently imply at least two 25-basis-point rate cuts by the Federal Reserve this year, and the prospect of looser policy continues to lend broad support to bullion. Official-sector demand also remains robust, with China’s central bank extending its gold-buying streak for a fifteenth consecutive month in January.
Meanwhile, ongoing geopolitical tensions are helping to sustain safe-haven interest in gold. Strains between the US and Iran persist despite some signs of diplomatic engagement, and Washington has warned US-flagged vessels to avoid Iranian waters.
