Gold prices declined on Tuesday. Investors are taking a cautious stance ahead of key data on the labor market and inflation in the United States. This information may give signals about the prospects of the Federal Reserve System policy.

Earlier, the market approached the previous high near $4380, but investors are clearly not confident enough for aggressive purchases.

Traders are laying down a 76% probability of a 25 basis point rate cut in the U.S. in January. Data released this week is expected to provide new clues as to how quickly the US Federal Reserve may ease policy in the new year. Should expectations of a rapid rate cut in the United States grow, the dollar could come under pressure, while gold, on the other hand, could get a chance to make a new high.