Gold Prices Retreat as Investors Take Profits Ahead of Inflation Data

Gold prices retreated on Monday after hitting a seven-week high in the previous session. Investors took profits, causing spot gold to fall by 0.3% to $4,330.46 per ounce, while US gold futures dropped 0.2% to $4,390.60.

The decline comes ahead of key US inflation data releases this week, including the Consumer Price Index on Wednesday and the Producer Price Index on Thursday.

Tim Waterer, chief market analyst at KCM Trade, expects gold to remain supported above the $4,300 level in the near term. He noted that soft readings in these inflation indices would strengthen the case for a rate hold and clear a path for further upside in gold.