Gold, silver retreat as dollar ticks up

Synopsis

On Tuesday, both gold and silver experienced a pullback after a recent upward trend. The strengthening U.S. dollar has made these precious metals more expensive for international buyers. With eyes now fixed on impending U.S. jobs and inflation figures, investors are eager for hints about the Federal Reserve's stance on interest rates.

Gold and silver fell on Tuesday after two straight sessions ‍of gains, as the dollar edged higher from a more than one-week low, while ⁠investors awaited key U.S. jobs and inflation data due later this week to gauge the interest rate trajectory.

FUNDAMENTALS

Spot gold fell 1% to $5,016.56 per ounce by 0055 GMT. ‌The metal ‌gained 2% on Monday, as the dollar weakened to a more than one-week low. It ‌had scaled a record high of $5,594.82 per ounce on January 29.

U.S. gold futures for April delivery lost 0.8% to $5,041.60 per ounce.

Spot silver was down 2.5% at $81.31/oz, after rising nearly 7% in the previous session. It had ​hit an all-time high of $121.64 on January ​29.

The U.S. dollar index rose 0.2% from a more than ‌one-week low ‍hit in the previous session, making greenback-priced metals more ‍expensive for overseas buyers. [USD/]

Stock indexes rose on Monday, ‌with U.S. technology shares leading Wall Street higher, as investors sought bargains in markets beaten down last week, while the yen strengthened following the resounding election win of Japanese Prime Minister Sanae Takaichi. [MKTS/GLOB]

White House economic adviser Kevin Hassett said on Monday that U.S. job gains could be lower in the coming months due ‍to slower labor force growth and higher productivity, weighing into a debate that is also underway at the Federal Reserve ‍and promises ⁠to shape the ⁠central bank's coming policy decisions.

Investors expect at least two 25-basis-point rate cuts in 2026, with the first one expected in June. Non-yielding bullion tends to do well in low-interest-rate environments. [FEDWATCH]

Investors await the nonfarm payrolls report for January, due on Wednesday, and inflation data on Friday for more cues on the Fed's monetary policy path.

Spot platinum shed 1.6% to $2,088.71 per ounce, while palladium lost 1.7% to $1,710.68.

DATA/EVENTS (GMT)

1330 US Import Prices YY Dec

1330 US Retail Sales MM Dec

...moreless

...moreless