Gold soared on Tuesday following several days of robust gains in 2023, as traders welcomed the possibility of an early interest rate decrease by Fed in 2024.

As investors increased their bets that the Fed would start reducing interest rates as early as March 2024, gold spot prices were trading around $70 an ounce below a record peak reached at the start of December.

However, as eyes are on additional U.S. economic figures for December, particularly the crucial nonfarm payrolls figures, which is scheduled for release later this week resisted further gold advances.

Spot gold added 0.3% to $2,069.89 per ounce, meanwhile gold futures advanced by 0.3% to $2,078.90 per ounce.

Markets were now focused squarely on key nonfarm payrolls figures for December, which is due this Friday. The reading is expected to show further cooling in the labor market, a trend that is likely to put more pressure on the Fed to consider cutting rates early. 

Federal Reserve issued a warning in December, stating that further cooling in the two trends would be necessary before the bank would contemplate reducing interest rates early. Additionally, officials cautioned that expectations of an early rate cut by the Fed were too high.