Gold prices fell in early Asian trade Tuesday but remained above $5,000 per ounce, retreating from sharp gains in the prior session as precious metals markets braced for key U.S. economic data. Silver dropped 2.4% to $81.29 per ounce, while platinum slid 2% to $2,081.71 as the dollar recovered slightly.

Precious metals have experienced wild swings over the past week, with prices sliding from record highs amid profit-taking and overheated positioning. The volatility intensified as markets focused on potential leadership changes at the Federal Reserve, with Kevin Warsh nominated to replace Jerome Powell. Warsh's nomination sparked deep losses in metal markets, with gold plummeting from near $5,600 per ounce and silver slumping from levels above $120 per ounce.

Investors are closely watching upcoming U.S. economic readings, including January nonfarm payrolls data Wednesday and consumer price index inflation data Friday. These reports are expected to influence the Fed's interest rate path, with inflation and labor market strength being the bank's two primary considerations. The uncertainty around monetary policy has created heightened volatility in precious metals markets, with traders gauging the implications of a potentially less dovish Fed under Warsh's leadership.