Gold Prices Slip as Investors Take Profits

Gold prices slipped on Monday after reaching a seven-week high in the previous session. According to CNBC, spot gold was down 0.5% at $4,322.28 per ounce. U.S. gold futures also fell 0.4% to $4,381.60.

The price drop is attributed to investors taking profits after the strong gain from weaker-than-expected U.S. jobs data in July. The U.S. economy unexpectedly shed jobs in July, and previously reported job gains for the prior two months were revised sharply lower.

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 a lower interest rate environment boosts the attractiveness of gold against income-generating assets.

The Federal Reserve's interest rate path is also being closely watched, with markets looking to U.S. inflation data for fresh clues. Key U.S. data scheduled for release this week include the Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday.