February Gold futures traded above the previous session's high of $4,384.90 to reach $4,414.80 before pulling back toward $4,325.30. This price action occurred as the CME FedWatch Tool indicated a decrease in the implied probability of a January rate cut to 14.95%. With only two total cuts priced in through October 2027, the shift in expectations served as a headwind for the precious metal. Meanwhile, trading volume on the first day of 2026 remained at its lowest levels since November 25, suggesting many institutional and retail participants remained inactive ahead of next week.