Gold Prices Slump Amid Market Optimism and Upcoming U.S. Economic Data

Gold prices dipped on Tuesday as global equity markets showed gains, reflecting improved risk appetite among investors. Market participants are keenly awaiting a series of U.S. economic data points due this week, which could impact interest rate forecasts.

Spot gold fell 0.2% to $5,055.29 per ounce, following a record high of $5,594.82 on January 29. As U.S. gold futures for April held steady, analyst Ricardo Evangelista noted how strengthened risk sentiment has exerted downward pressure on gold.

Japanese Prime Minister Sanae Takaichi's election victory spurred an extended rally in Tokyo stocks, contributing to the growth in global equities. Analysts and traders are eyeing U.S. economic data for clues on Federal Reserve rate decisions, which are projected to influence gold's performance under potential rate cuts this year.