Gold Prices Hold Steady Above $5,000 Ahead of Key US Labor and Inflation Data

Despite a decline on Tuesday, gold remains robust above the $5,000 per ounce mark, as investors adopt a cautious stance ahead of significant US labor and inflation data that may dictate the trajectory of future interest rates.

According to the latest spot trading data, gold fell by 0.7% to $5,029.49 per ounce after a 2% increase on Monday, buoyed by a drop in the US dollar to its lowest level in over a week.

It is noteworthy that the precious metal reached a record high of $5,594.82 per ounce on January 29, as reported by Reuters.

US futures contracts for April decreased by 0.5% to $5,052 per ounce.

In contrast, silver saw a decline in spot trading, falling 2.1% to $81.64, after a nearly 7% rise in the previous session. Silver also hit an all-time high of $121.64 on January 29.

In analytical comments, Ilia Spivak, head of macroeconomics at Tasty Live, stated, "The Cold War and economic competition between the US and China are likely to persist for many years... this provides gold with a clear upward trend."

Conversely, White House economic advisor Kevin Hassett noted that job gains in the US may slow in the coming months due to sluggish labor force growth and rising productivity, which could influence Federal Reserve decisions.

Investors are anticipating at least two interest rate cuts of 25 basis points in 2026, with the first reduction expected in June, which typically supports gold prices that do not yield returns.

In light of the upcoming economic data this week, the market is looking forward to December retail sales, the consumer price index, and the non-farm payroll report for January.

Regarding other metals, platinum fell by 2.1% to $2,084.09 per ounce, while palladium decreased by 1.7% to $1,710.75.