Gold Slips Below Recent Highs as Profit-Taking Sets In Ahead of Key US Data

Gold prices eased toward $5,030 per ounce on Tuesday, retreating from a more than one-week high reached in the previous session, as investors opted to book profits after the recent rally.

Market focus has now shifted to key US economic releases later this week, particularly the nonfarm payrolls report and inflation data, which are expected to offer clearer signals on the Federal Reserve’s monetary policy trajectory.

Despite the near-term pullback, expectations of easier monetary policy continue to support bullion. Markets are currently pricing in at least two 25-basis-point interest rate cuts this year, reinforcing gold’s appeal in a lower-rate environment.

Official-sector demand remains a key pillar, with the People’s Bank of China extending its gold purchases for a fifteenth consecutive month in January, highlighting continued diversification away from traditional reserve assets.

Meanwhile, geopolitical risks continue to underpin safe-haven demand. Tensions between the United States and Iran remain elevated despite signs of diplomatic engagement, with Washington recently warning US-flagged vessels to avoid Iranian waters, keeping regional uncertainty firmly in focus.