Bullion had jumped to a record high of $2,135.40 on Monday, before declining more than $100 in a single day to end more than 2 per cent down

Gold slid on Tuesday after hitting an all-time peak in the previous session as the dollar recovered and investors refrained from making big bets ahead of key U.S. jobs data that could offer more clarity on the U.S. interest rate path.

Spot gold was 0.5 per cent lower at $2,020.29 per ounce by 2010 GMT. Bullion had jumped to a record high of $2,135.40 on Monday, before declining more than $100 in a single day to end more than 2 per cent down.

U.S. gold futures settled down 0.3 per cent at $2,036.30.

The momentum that led gold to a record high on Monday may fizzle in the short term because of uncertainty over the timing of U.S. monetary easing, but broader geopolitical risks should give a boost towards new highs, analysts said.

Gold bulls are exhausted and hitting a pause after the rally, said Jim Wyckoff, senior analyst at Kitco Metals, adding that “the $2,000 level is probably going to be the near-term floor under the gold market.”

The dollar gained 0.2 per cent to stay close to a two-week high, making gold more expensive for other currency holders.

Traders are now pricing in a 66 per cent possibility of a rate cut in March, the CME FedWatch tool shows. Lower interest rates tend to support non-interest-bearing bullion.

We only expect the (gold) price to increase lastingly to $2,100 per troy ounce in the second half of 2024, when the Federal Reserve begins lowering its interest rates, Commerzbank said in a note.

Data showed U.S. job openings dropped to a more than two-and-a-half year low in October, suggesting that higher interest rates were lowering demand for workers.

Investors are on the watch for Friday’s U.S. non-farm payrolls report for November.

Spot silver shed 1.4 per cent to $24.16 per ounce, while platinum lost 1.8 per cent to $899.80.

Palladium slid 4.1 per cent to a more than five-year low of $936.24 per ounce.