Gold Prices Slip Amid Profit-Taking and Ahead of US Inflation Data
Gold prices slipped on Monday as investors took profits after hitting a seven-week high in the previous session. Spot gold fell 0.5% to $4,322.28 per ounce at 0200 GMT, while US gold futures dropped 0.4% to $4,381.60.
The decline comes after weaker-than-expected US jobs data led to a seven-week high on Friday. Despite this, analysts expect gold to remain supported above the $4,300 level in the near term.
Tim Waterer, chief market analyst at KCM Trade, said 'Gold is edging slightly lower as it succumbs to some profit-taking following last week's strong NFP-inspired gains.' He added that a natural stabilisation rather than a meaningful shift in sentiment was underway.
The upcoming US inflation data on Wednesday and producer price index on Thursday will be crucial in determining the Federal Reserve's interest rate path. Soft readings could strengthen the case for a rate hold, paving the way for further upside in gold.