Gold prices retreated during Asian trading, giving up part of the strong gains recorded in the previous session, as caution dominated precious metals markets ahead of a series of important US economic data releases scheduled for this week.
Silver and platinum prices also moved lower, despite receiving limited support from a weaker US dollar in the prior session. However, the dollar later stabilized during Asian hours, adding pressure on metals prices.
Spot gold fell by around 0.7 percent to $5,022 per ounce, while April gold futures declined by a similar margin to $5,044 per ounce. Spot silver dropped by more than 2 percent to approximately $80.9 per ounce, while spot platinum slid by nearly 1.8 percent to around $2,085 per ounce.
Precious metals prices continue to trade within volatile ranges following sharp swings seen last week. Profit taking and overstretched speculative positions pushed prices lower from record highs. Uncertainty surrounding US monetary policy also contributed to heightened volatility, particularly amid speculation over potential changes in Federal Reserve leadership.
At the same time, metals were influenced by shifting safe haven demand amid mixed developments in US Iran relations. Despite signs of progress in talks related to Iran nuclear program, Washington issued warnings to US vessels transiting the Strait of Hormuz, increasing market anxiety.
Although gold and other precious metals have partially recovered from recent losses, prices remain below the record levels reached in late January, as investors remain hesitant to engage in aggressive buying. Analysts noted that buying on dips remains selective, reflecting market sensitivity to broader macroeconomic signals.
Analysts also pointed out that the trend of reducing reliance on the US dollar supported gold throughout the past year. However, short term movements in the dollar are expected to remain closely tied to US labor market performance and its implications for monetary policy.
Markets are closely watching a series of key US economic data releases this week, which are expected to provide clearer signals on the health of the world largest economy and the future path of interest rates. These include retail sales figures, the non farm payrolls report, and inflation data, all of which play a central role in shaping future Federal Reserve decisions.
Investors are also assessing potential shifts in monetary policy should Kevin Warsh assume the role of Federal Reserve chair, succeeding Jerome Powell. Warsh is widely viewed as less inclined toward monetary easing, a perception that previously triggered sharp losses across precious metals markets. Gold fell from levels near $5,600 per ounce, while silver retreated from levels above $120 per ounce, with prices yet to fully recover from those declines.
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