Bullion has been flat since the start of the week even though the latest US data missed market expectations and prompted investors to move more cautiously.
At 8.30 am, gold prices were at $5,046, up about 0.44% since they opened early Wednesday in Asian trading.
US retail sales disappointed market expectations as consumers spent more cautiously due to concerns over rising prices and severe weather disruptions.
Sales in the control group, which is a key component of the Gross Domestic Product (GDP) calculation, also recorded a decline, affected by a lower revision of November data.
At the same time, the Employment Cost Index (ECI) for the Fourth Quarter of 2025 recorded a decrease compared to the previous reading, giving an early signal that the US labor market could potentially weaken further.
This data is the main focus of Federal Reserve (Fed) officials as an indicator of the level of labor market slack and the direction of core inflation.
Following the release of the data, traders increased expectations for monetary policy easing in 2026, with the Fed's rate cut forecast raised from 56.5 basis points to 58.5 basis points, according to Prime Market Terminal data.
However, the market's focus is now on the Non-Farm Payrolls (NFP) report due on Wednesday, February 11.
The US economy is expected to add around 70,000 new jobs in January, up from 50,000 in December, while the unemployment rate is forecast to remain stable at 4.4%.
