Gold price rally loses steam

Gold prices edged lower on Tuesday, trading $100 below the record high level hit in the last session, as the dollar held firm and investors awaited more US economic data this week that could influence the Federal Reserve's rate outlook, reports Reuters.

Spot gold was down 0.3 per cent at $2,024.30 per ounce by 1200 GMT. Bullion had climbed to an all-time high of $2,135.40 on Monday, before dropping more than $100 in a single day to close 2 per cent lower. US gold futures were steady at $2,042.70.

"Market participants are already expecting 120 bps of rate cuts (from the Fed) in 2024. So a repricing of those expectations could result in near-volatility, particularly if upcoming U.S. economic data comes in on the positive side," said UBS analyst Giovanni Staunovo.

"That said, we expect market participants who missed out the gold rally would likely step in and buy gold on dips below $2,000/oz."