REUTERS

Gold prices slipped on Tuesday, as investors turned cautious ahead of key US jobs and inflation data, which could provide cues for Federal Reserve policy heading into the new year.

Spot gold lost 0.3 percent to $4,290.33 per ounce, as of 0637 GMT. Bullion has rallied 64 percent year-to-date, smashing multiple records along the way. US gold futures were down 0.4 percent at $4,316.40.

“We’re right up against the former high around $4,380 from mid-October. So the market is essentially asking whether there’s enough conviction to break higher, or whether this is a level where momentum starts to fade,” said Ilya Spivak, head of global macro at Tastylive.

Traders are pricing in a 76 percent probability of a 25-basis-point US rate cut in January, with some expecting two cuts, according to CME’s FedWatch tool. This week’s data docket is expected to offer fresh clues on how quickly the Fed may ease policy in 2026.

The combined US employment reports for October and November, due on Tuesday, will lack several details after a 43-day government shutdown curtailed data collection, including October’s unemployment rate.