Gold prices fell in early Asian trading on Tuesday, retreating from strong gains in the previous session as metals markets remained nervous ahead of a series of key US economic data due this week.
Silver and platinum prices also declined, after receiving limited support from the overnight drop in the dollar. The US dollar saw a slight recovery in Asian trading.
Spot gold fell 0.8% to $5,016.28 an ounce, while April gold futures contracts fell 0.8% to $5,041.60 an ounce at 22:55 Saudi time.
Spot silver fell 2.4% to $81.2945 an ounce, while spot platinum declined 2% to $2,081.71 an ounce.
Precious metals experienced sharp fluctuations last week as a combination of profit-taking and oversold positions drove prices down from record highs. Uncertainty surrounding US monetary policy, ahead of a potential change in Federal Reserve leadership, also fueled increased volatility.
This week the focus is entirely on key US economic data to get further clues about the world's largest economy, as well as the path of interest rates.
Non-farm payrolls data for January are due on Wednesday, while the consumer price index will be released on Friday. Both readings are expected to influence the Federal Reserve's interest rate plans, given that inflation and labor market strength are the central bank's two most important considerations.
Markets continued to assess the outlook for monetary policy under Kevin Warsh, President Donald Trump’s nominee for the next Federal Reserve chairmanship after Jerome Powell’s term ends in May.
Warsh is seen as a less lenient choice, as his nomination triggered deep losses in the metals markets—losses from which they have yet to recover. Gold fell from a record high of nearly $5,600 an ounce, while silver retreated from levels above $120 an ounce.
