2024.01.1609:24:00UTC+00Gold Dips As Dollar Gains Ahead Of Waller Speech

Gold prices declined on Tuesday as a stronger dollar and an uptick in Treasury yields weighed on bullion's safe-haven appeal.

Spot gold fell 0.7 percent to $2,040.72 per ounce while U.S. gold futures were down 0.4 percent at $2,044.40.

The dollar traded at one-month highs as investors tempered rate cut expectations.

European Central Bank's Joachim Nagel said on Monday that inflation remains high and it's too early to discuss cutting interest rates.

Additionally, ECB Governing Council member Robert Holzmann warned that it's possible there will be no rate cuts this year.

French central bank Governor Francois Villeroy de Galhau said in Davos that it's too early to declare victory over inflation, but the ECB's next move is likely to be an interest rate cut sometime this year.

Traders now look to Federal Reserve Governor Christopher Waller's speech later in the day, whose dovish turn in late November helped to send markets soaring.