Spot gold fell 0.7% to US$5,029.49 per ounce by 3.32am.

The metal gained 2% yesterday, as the US dollar weakened to a more than one-week low.

It had scaled a record high of US$5,594.82 per ounce on Jan 29.

US gold futures for April delivery lost 0.5% to US$5,052.0 per ounce.

Spot silver was down 2.1% at US$81.64/oz, after rising nearly 7% in the previous session.

It had hit an all-time high of US$121.64 on Jan 29.

“The cold-war, economic competition between the US and China, that’s not going away anytime probably for years to come … so 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 US 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.

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

White House economic adviser Kevin Hassett said yesterday that US job gains could be lower in the coming months due to slower labour force growth and higher productivity, weighing into a debate that is also underway at the Fed.

Investors expect at least two 25-basis-point rate cuts in 2026, with the first one expected in June.

Non-yielding bullion tends to do well in low-interest-rate environments.

Data expected this week includes monthly retail sales for December, the consumer price index (CPI) for January, and the nonfarm payrolls report for January.

Spot platinum shed 2.1% to US$2,084.09 per ounce, while palladium lost 1.7% to US$1,710.75.