Gold dropped more than 1% to around $4,920 per ounce on Tuesday, marking a second consecutive session of losses, amid thin trading volumes due to local public holidays in key markets.
Markets in China and several countries in Asia remained shut for the Lunar New Year, following a holiday in the US on Monday.
Meanwhile, softer-than-expected US inflation data released last Friday boosted expectations for further monetary easing by the Federal Reserve this year.
Traders are currently pricing in slightly more than two rate cuts, with July seen as a potential starting point.
Investors are now awaiting the Fed’s meeting minutes, the advance estimate of US GDP, and PCE inflation data for clearer guidance on the policy outlook.
