Gold Prices Slip After Seven-Week High Amidst Anticipation of Key Inflation Data
Gold prices fell on Monday as investors took profits after hitting a seven-week high in the previous session, amidst anticipation of key US inflation data. Spot gold dropped by 0.5% to $4,322.28 per ounce, while US gold futures declined 0.4% to $4,381.60.
The price drop was attributed to profit-taking following weaker-than-expected US jobs data, which led to a shift in expectations of the Federal Reserve's interest rate path. Tim Waterer, chief market analyst at KCM Trade, stated that gold is edging lower but expects it to remain supported above $4,300 in the near term.
The upcoming release of US inflation data, including the Consumer Price Index (CPI) on Wednesday and Producer Price Index (PPI) on Thursday, will be closely watched for its impact on interest rates. Waterer noted that soft readings would strengthen the case for a rate hold, potentially leading to further upside in gold.