This development comes just before the release of critical U.S. inflation and jobs data later this week, which could significantly impact the trajectory of interest rates.

Spot gold experienced a 0.1% increase, reaching $1,921.69 per ounce. This upswing follows the peak observed on Monday, which marked the highest point since August 10.

The upcoming week is packed with economic releases, with special attention on the U.S. PCE price index—a preferred gauge of inflation for the Federal Reserve—set to be unveiled on Thursday.

Mounting worries encompass record government debt, geopolitical tensions with potential to disrupt global trade, and persistently weak productivity gains

In a separate development, the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported a 0.3% increase in holdings, totaling 886.64 metric tons on Monday.