Gold falls on investor caution ahead of key US economic data

Gold fell on Tuesday, though held above the $5,000-per-ounce level, as investors stayed cautious ahead of key U.S. jobs and inflation data due later this week that could help gauge the U.S. Federal Reserve's interest rate trajectory.

Spot gold XAU= fell 0.8% to $5,022.57 per ounce by 0524 GMT. The metal gained 2% on Monday, as the dollar weakened to its lowest level in more than a week. Gold scaled a record high of $5,594.82 on January 29.

U.S. gold futures GCcv1 for April delivery lost 0.7% to $5,044.80 per ounce.

Spot silver XAG= slipped 2.8% to $81.08 an ounce, after rising nearly 7% in the previous session. It had hit an all-time high of $121.64 on January 29.

"We're in a situation where gold has something of a built-in upside bias broadly, and now it's a question of just how much will short-term Fed policy expectations matter," said Ilya Spivak, head of global macro at Tastylive.

The U.S. dollar nursed steep losses on Tuesday, while the yen held on to its gains in the wake of Prime Minister Sanae Takaichi's resounding election victory. USD/

Spivak added that gold is being pulled back to the $5,000 level from both the upper and lower price ranges, while silver is showing more volatility on speculative trading.

Investors are awaiting a string of U.S. economic data - retail sales due Tuesday, the nonfarm payrolls report on Wednesday and inflation data on Friday. Markets are currently pricing in at least two 25-basis-point rate cuts in 2026, with the first expected in June.

The non-yielding bullion tends to do well in a low-interest-rate environment. FEDWATCH

White House economic adviser Kevin Hassett said on Monday that U.S. job gains could be lower in the coming months.

For gold, "$5,000 is a support and $80 for silver. But intraday, both metals will be broadly range-bound, with a slight tilt towards negativity because of profit booking," Jigar Trivedi, a senior research analyst at IndusInd Securities, said, adding that investors are cautious given recent volatility.

Spot platinum XPT= shed 2.3% to $2,075.18 per ounce, while palladium XPD= lost 1.3% to $1,718.37.

-Reporting by Ishaan Arora; Editing by Subhranshu Sahu and Janane Venkatraman/Reuters