Gold prices are retreating from historic highs, with CPI data in focus

Gold prices dipped in Asian trade on Tuesday, retreating from record highs as traders sought to lock in profits ahead of critical US inflation data that is largely expected to influence interest rate decisions.

Growing predictions on interest rate reduction as early as June, along with rising safe haven demand, drove bullion prices to fresh record highs in March, with spot prices approaching $2,200 per ounce.

However, this gain has moderated in recent sessions, particularly following relatively hawkish indications from the Federal Reserve and mixed labor market statistics. The dollar steadied after recent losses, putting pressure on metal prices.

Spot gold declined 0.2% to $2,178.43 an ounce, while April gold futures fell 0.2% to $2,184.65 an ounce at 01:24 ET (05:24 GMT). Both instruments were trading roughly $15 off their record highs set last week.

CPI statistics awaited rate cut hints.
The focus was now squarely on vital U.S. consumer price index (CPI) data, which is due later on Tuesday, for fresh clues on the future direction of interest rates.

The figure is expected to show that inflation remained sticky in February, far exceeding the Fed's 2% annual objective.

The inflation report will also be widely watched after a number of Fed officials, most notably Fed Chair Jerome Powell, stated that the timing and magnitude of any rate decreases this year will be tightly related to the trend of inflation.

Inflation data is also expected to provide further guidance to markets following last week's generally mixed signals from nonfarm payrolls.

Gold is projected to benefit from any significant interest rate cuts this year, which has been a main driver of the yellow metal's climb in recent days.

Other precious metals dipped on Tuesday after making significant gains in previous sessions. Platinum futures declined 0.5% to $938.0 per ounce, while silver futures slipped 0.1% to $24.685 per ounce.

Copper maintains its increases on China hopes.
Copper prices dipped on Tuesday, but they had made considerable gains in the previous week on anticipation of more stimulus measures in major importer China.

Copper futures expiring in May slipped 0.3% to $3.9218 per pound, following a 0.8% increase last week.

Positive import numbers from China also indicated that demand remained stable in the country despite generally bad economic conditions.