Gold steadies below record $4,600/oz

Gold prices were largely steady near its all-time peak on Tuesday, ‌supported by ongoing geopolitical tensions, while investor caution ahead of key inflation data limited upside momentum.

Spot gold traded 0.1 percent lower at $4,588.43 per ounce as of 0947 GMT, following a record high of $4,629.94 in the previous session. US gold futures for February delivery slipped 0.4 percent to $4,597.50.

“A ‌modest recovery in the US dollar, driven by hawkish comments from a ​senior Fed official, and investors’ focus on the release of US CPI data later in the session acts as a headwind (for gold),” said ActivTrades analyst Ricardo ‍Evangelista.

Federal Reserve Bank of New York President John Williams said on Monday that the central bank does not face any near-term pressure to change the stance of monetary policy.

Investors are ⁠currently anticipating two interest rate cuts this year, with today’s Consumer Price ‍Index data expected to provide further clues on monetary policy going forward.

On the geopolitical ‌front, ‌Russian forces launched the year’s most intense wave of missile attacks on Ukraine early on Tuesday, killing four people and injuring several others.

Meanwhile, US President Trump said on Monday any country that does business with Iran will face ⁠a 25 percent tariff on trade ⁠with the United ​States.

Non-yielding assets tend to do well in a low-interest-rate environment and when geopolitical or economic risks spike.

“With (gold) prices consolidating above the $4,500 level, supported by a bearish outlook for ‍the dollar and ongoing geopolitical uncertainty, the $5,000 mark appears increasingly within reach and could be tested in the first half of the year,” Evangelista added.