Gold prices slipped to a more than one-week low on Tuesday as a firmer U.S. dollar and cautious risk sentiment weighed on the precious metals market ahead of key U.S. economic data expected later this week.

Traders said dollar strength, driven by safe-haven demand and anticipation of Federal Reserve minutes and GDP reports, made dollar-priced bullion less attractive for holders of other currencies.

The pullback in gold also reflected risk appetite in other assets as markets awaited further macroeconomic signals.

Metals traders cautioned that upcoming data on inflation and employment could swing sentiment sharply for gold and related assets.

Silver and other precious metals also saw pressure as traders rebalanced portfolios in favour of cash-equivalents and yield-bearing assets amid macro uncertainty.

Commodity markets generally displayed mixed signals, with energy prices tracking geopolitical developments and broader economic narratives.

Investors said that volatility ahead of major data could persist until clearer policy cues emerge.

Central banks’ policy outlooks, particularly those of the Federal Reserve and the European Central Bank, are influencing bullion markets as rate expectations shape currency and yield dynamics.

A stronger dollar tends to temper gold demand, while expectations of stable or tightening monetary settings can accentuate downward pressure on non-yielding assets like precious metals.

Analysts said that gold may find support if upcoming macro readings undershoot expectations or if geopolitical tensions escalate, which typically renew safe-haven flows.

However, short-term price patterns remain sensitive to policy-linked shifts and global risk sentiment.

Investors will monitor the release of U.S. economic indicators and central bank communications closely for cues that could determine gold’s near-term trajectory.

Source: Reuters.