Gold prices dipped as traders took profits after the metal climbed back above $5,000 per ounce, driven by mild U.S. inflation data. On Monday, gold fell by as much as 0.8%, following a 2.4% increase in the previous session. The U.S. Consumer Price Index (CPI) rose 0.2% month-on-month in January, easing concerns about a sharp rise in inflation and supporting expectations for Federal Reserve interest rate cuts. Lower borrowing costs typically benefit non-yielding precious metals.

In late January, a surge in speculative buying pushed gold to a critical point in its multi-year bull run, briefly soaring to a record high above $5,595 per ounce. However, after a sharp two-day decline earlier this month, prices retreated below $4,500, before recovering roughly half of those losses amid volatile trading.

Several banks anticipate that gold will resume its upward trend, citing persistent drivers of the multi-year rally—including geopolitical tensions, doubts about the Federal Reserve's independence, and a global shift away from traditional assets such as currencies and sovereign bonds. ANZ Group expects gold to reach $5,800 per ounce in the second quarter, aligning with bullish forecasts from numerous financial institutions.

Hebe Chen, an analyst at Vantage Markets in Melbourne, noted, "Structurally, gold continues to demonstrate resilience—the macroeconomic environment remains stable without disruption, and technical support remains intact."

As of 9:00 a.m. Beijing time, spot gold was down 0.6% at $5,012.44 per ounce; silver fell 1% to $76.66 per ounce; platinum and palladium also edged lower. The Bloomberg Dollar Spot Index, which tracks the greenback's performance, rose slightly by 0.1%.