Gold Prices Slip Ahead of Key US Inflation Data Releases
Gold prices declined on Monday as investors took profits after hitting a seven-week high in the previous session. Spot gold fell by 0.3% to $4,330.46 per ounce at 0443 GMT.
The price drop comes ahead of key US inflation data releases this week, which will provide clues about the Federal Reserve's interest rate path. Weak US nonfarm payrolls data in July led to prices hitting their highest since June 17 on Friday.
Tim Waterer, chief market analyst at KCM Trade, said that gold is edging lower due to profit-taking but expects it to remain supported above $4,300 in the near term. He noted that soft readings in US inflation data could strengthen the case for a rate hold and clear a path for further upside in gold.
Waterer also mentioned that middle-east uncertainty remains a lingering risk factor, as any renewed escalation driving oil prices up could pressure gold. Spot silver rose 0.3% to $63.77 per ounce, while platinum gained 0.2% to $1,748.80. Palladium slipped 1% to $1,364.55.