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Investors are also awaiting the U.S. nonfarm payrolls report later in the day for clues on the Federal Reserve’s policy direction.

Retail sales figures and preliminary manufacturing indicators will also be released, while November inflation data due on Thursday will be closely watched. Markets currently price in a 75.6% chance that the Fed will leave interest rates unchanged at its January meeting, although some expect two more rate cuts next year.

The U.S. government shutdown delayed the release of economic data, which will be published late on Tuesday. The Nonfarm Payrolls (NFP) report will be in focus, as it could provide further insight into the path of U.S. interest rates.

If the data point to a slowdown in the U.S. labor market, this would strengthen expectations of rate cuts and support the yellow metal. U.S. retail sales and the Purchasing Managers’ Index (PMI) will also be released.

The possibility of a Russia–Ukraine peace deal has also reduced safe-haven demand for gold. Nevertheless, the metal continues to benefit from strong central bank buying, robust inflows into ETFs, and investors moving away from government bonds and currencies.