Gold climbed above $5,070 per ounce on Tuesday, near a two-week high as the latest US data reinforced expectations for a more accommodative Federal Reserve stance.

Softer activity indicators have already moved rate pricing, with December retail sales stalling unexpectedly, the GDP control group slipping 0.1%, job openings falling to their lowest level since 2020, and private payroll growth undershooting forecasts, collectively signalling cooling demand and easing inflation pressure.

These releases have lowered rate expectations and strengthened the case for policy easing later this year, providing a firmer fundamental backdrop for non yielding bullion.

Official sector demand remains a key structural support, with China’s central bank extending gold purchases for a fifteenth consecutive month in January.

Geopolitical risks continue to underpin safe haven demand, as tensions between the US and Iran persist despite tentative diplomatic progress, keeping downside risks contained.