Spot gold prices fell by 1% to $5,016.56 per ounce early Tuesday. The metal rallied 2% on Monday after the US dollar weakened to a one-week low. Gold had hit a record high of $5,594.82 per ounce on January 29. Meanwhile, US gold futures for April delivery dropped 0.8% to $5,041.60 per ounce. Silver prices also took a hit, falling 2.5% to $81.31 per ounce following a nearly 7% rise the previous day. Silver reached an all-time high of $121.64 on January 29. The US dollar index gained 0.2% after touching a one-week low, which made metals priced in dollars costlier for global buyers. Investors anticipate at least two 25-basis-point interest rate cuts by the Federal Reserve in 2026, with the first expected in June. Gold and silver often perform well when interest rates are low, as they do not yield interest. Market participants are waiting for the US nonfarm payrolls report for January on Wednesday and inflation data on Friday. These reports will provide important signals about the Federal Reserve’s monetary policy direction. Other metals also dropped: spot platinum declined 1.6% to $2,088.71 per ounce, and palladium lost 1.7% to $1,710.68 per ounce. Upcoming US data releases include Import Prices Year-over-Year and Retail Sales Month-over-Month for December, both scheduled for 1330 GMT.