Gold prices fell slightly during the Asian session on Tuesday, as the recovery of the dollar and US bond yields put pressure on prices ahead of more economic data coming from the US economy.
Gold's decline comes today despite geopolitical tensions in the Red Sea, but as the dollar recovered today, this led to a decline in the precious metal, pending statements by Fed officials this week, which are expected to provide more signals about when the central bank will start cutting interest rates this year.
Fed officials are focusing on economic data for signs of an interest rate cut.
Today we are waiting for the speech of Christopher Waller, a member of the Federal Reserve, later on Tuesday.
Readings of US industrial production and retail sales data are also scheduled for release tomorrow, Wednesday.
Traders were seen slightly reducing their bets on a cut in interest rates next March, which led to consolidation in the US dollar index and also treasury bond yields
However, the latest update from Goldman Sachs lowered its interest rate forecast, as it expects that the US Federal Reserve will cut the interest rate by 25 basis points in March, followed by 4 more cuts this year, with expectations of a rise in US growth from 2.1% to 2.3%.
However, the bank expected only 5 cuts this year, which is less than the six to seven cuts that the market had priced in after the last Fed meeting.
