Gold Holds Steady as US Inflation Data Looms

Gold prices held steady on Monday after reaching a seven-week high in the previous session. Spot gold was little changed at $4,346.85 per ounce, while US futures rose 0.2% to $4,406.80.

The metal's price surge can be attributed to weak US nonfarm payrolls data, which reduced fears of an imminent rate hike and gave gold a boost. According to Tim Waterer, chief market analyst at KCM Trade, 'The weak U.S. jobs data reduced fears of an imminent rate hike and gave the metal a spark.'

Waterer expects gold to remain supported above the $4,300 level in the near term, as a lower interest rate environment boosts the attractiveness of gold against income-generating assets.

Key US data scheduled for release this week includes the Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday. Soft readings would strengthen the case for a rate hold and clear a path for further upside in gold, according to Waterer.