Gold retreated during the early trading session of the week as the market shifted their capital to the USD currency as US Treasury bonds rose to their highest level since November 2022.
At 9.20 am, the price of gold was at $2,670.24, up 0.27% since it opened early Tuesday in the Asian session.
The market situation on Monday was influenced by investors digesting the US NFP report for December with figures that exceeded expectations and are now positioning themselves to await the release of the next inflation data.
On Wednesday, the market will see the Consumer Price Index (CPI) for December to be announced, increasing by around 2.8% compared to the previous 2.7% and the Core CPI is expected to be unchanged at 3.3%.
The rising inflation figure will shift market expectations regarding the Fed's actions in implementing its policy easing.
Meanwhile, money market futures data showed that most investors expect only 25 basis points of easing in 2025, leaving the Fed funds rate at 4.00%, down from the current range of 4.25% to 4.50%.
In addition, the yellow metal is currently still receiving support from the termination of a deal that could ease the war in Gaza and the inauguration of Donald Trump as the 47th US President, which has threatened tariffs on Mexico and Canada.
