Gold slips from one-week high on steady dollar; Other precious metals slip

Gold prices fell on Tuesday, having hit a one-week high in the previous session when it rose nearly 3% toward record levels, while other precious metals also rose as the dollar held steady near a two-week peak.

Fundamentals

* Spot gold was down 0.3% at $4,434.50 an ounce by 0131 GMT. Bullion hit a record high of $4,549.71 on December 26 and finished the year up 64%, its best annual performance since 1979.

* US Gold futures for February delivery fell 0.1% to $4,445.0.

* The dollar was near a two-week high as trading opened in Asia on Tuesday, making greenback-denominated bullion more expensive for holders of other currencies, as market concerns eased over US military action in Venezuela.

* Minneapolis Federal Reserve President Neil Kashkari said on Monday that inflation is easing gradually, but there is a risk that the unemployment rate could “pop” further, raising the prospect of a rate cut.

* Investors currently expect at least two rate cuts by the US Fed this year as they look to non-farm payrolls data due on Friday for further clues.

* Ousted Venezuelan President Nicolas Maduro pleaded not guilty to narcotics charges on Monday as world leaders rattled after his arrest by US President Donald Trump and officials in Caracas scrambled to regroup.

* The US captured Maduro on Saturday, in an operation that left civilians dead, after Trump said Washington would take control of the country.

* Non-yielding assets perform well in low-interest-rate environments and in times of geopolitical or economic uncertainty.

* Spot silver fell 0.3% to $76.29 an ounce, after hitting an all-time high of $83.62 on Dec. 29. Silver ended the year with an annual gain of 147%, outperforming gold, which had its best year on record.

* Spot platinum was down 0.1% at $2,269.14 an ounce, after hitting an all-time high of $2,478.50 last Monday. It rose more than 5% earlier in the session to hit a one-week high.

* Palladium traded down 1.6% at $1,680.25 an ounce.

Data/Events (GMT)

0745 France CPI (EU Nom) Prelim YY PMI Dec

0745 France CPI (EU Nom) Prelim MM PMI Dec

0745 France CPI Prelim YY NSA Dec

0745 France CPI Prelim MM NSA Dec

0845 France HCOB Composite PMI Dec

0850 France HCOB – Services PMI Dec

0850 France HCOB Composite PMI Dec

0855 Germany HCOB Services PMI Dec

0855 Germany HCOB Composite Final PMI Dec

0900 EU HCOB Services Final PMI Dec

0900 HCOB Composite Final PMI Dec

0930 UK S&P GLOBAL PMI: Composite – Output Dec

0930 UK Reserve Assets Total Dec

1300 Germany CPI Prelim YY Dec

1300 Germany HICP Prelim YY Dec

1445 US S&P Global Comp PMI Final Dec

1445 S&P Global Svcs PMI Final Dec