By: Creamer media

Gold prices declined on Tuesday, though they remained above the significant $5,000-per-ounce threshold. This movement comes as investors exercise caution in anticipation of critical U.S. employment and inflation data scheduled for release later this week. These figures are expected to offer essential guidance regarding the U.S. Federal Reserve‘s future interest rate strategy. Spot gold decreased by 0.62 percent to $5,023.85 per ounce, following a 2 percent gain on Monday driven by a weakened dollar. This recent peak is still below the record high of $5,594.82 per ounce reached on January 29. Similarly, U.S. gold futures for April delivery fell by 0.65 percent, settling at $5,046.51 per ounce.

Silver and PGMs prices decline

Silver also saw a notable downturn, with spot prices dropping 1.50 percent to $81.28 per ounce after a nearly 7 percent surge in the previous session. For context, silver reached its own all-time high of $121.64 on January 29. Other precious metals followed this downward trend, as spot platinum shed 1.32 percent to reach $2,091.00 per ounce, and palladium declined by 0.7 percent to $1,706.00.

UAE gold rates retreat

In the UAE, gold rates mirrored the international decline. The price for 24-carat gold dropped by AED 4.00 to AED 606.50, while 22-carat gold fell by AED 3.75 to AED 565.25. Other variants saw similar reductions: 21K gold lost AED 4.00 to settle at AED 538.50, 18K reached AED 461.50, and 14K decreased by AED 2.25 to AED 360.00.

Read more: Gold price surges to $5,036 as silver jumps to $82.07; UAE rates reach new highs

Global currency divergence

The U.S. dollar struggled with significant losses on Tuesday, whereas the Japanese yen maintained its gains following a decisive election victory by Prime Minister Sanae Takaichi. Meanwhile, White House economic adviser Kevin Hassett noted on Monday that U.S. job growth might decelerate in the coming months due to increased productivity and slower labor force expansion. This assessment contributes to the ongoing debate within the Federal Reserve.

Interest rate cut speculation

Investors are currently forecasting at least two interest rate cuts of 25 basis points in 2026, with the first potentially occurring in June. Bullion, which does not yield interest, generally performs well in environments with lower interest rates. Market attention remains fixed on this week’s data releases, including December’s monthly retail sales, the January Consumer Price Index (CPI), and the January non-farm payrolls report.