Gold prices stabilize after early 2022 losses, await inflation data

Gold Prices Recover as Market Reassesses Fed Rate Cut Expectations

Gold prices experienced a slight increase in Asian trade on Tuesday, bouncing back from a challenging start to the year. This recovery comes as markets reassess expectations for early interest rate cuts by the Federal Reserve. The yellow metal saw a sharp decline below the $2,050 an ounce level last week, following strong labor market data that generated uncertainty about the Fed’s plans to loosen policy early. However, gold prices found some relief this week as the dollar dropped from three-week highs, prompting some profit-taking. Despite this, gold prices remained significantly below December’s highs.