Gold Prices Soften Amid Inflation Data Uncertainty

Gold prices softened slightly in early US trading on Monday, while silver prices firmed up as investors consolidated gains from last week's payroll report. Spot gold was trading near $4,329.20 an ounce, down 0.28%, and spot silver was at $63.80, up 0.55% on the session.

The market is waiting for this week's inflation data, with the CPI due out on Wednesday at 8:30 a.m. ET. The Strait of Hormuz remains a key geopolitical input for oil prices and safe-haven demand, as Iran insists that the US meet certain conditions before the waterway fully reopens.

Gold prices have been influenced by the dual impact of higher oil prices supporting defensive demand, while a sustained crude rebound risks rebuilding the inflation case that would keep the Fed hawkish. Global markets were mixed overnight, with Japan's Nikkei 225 rising 2.1% and Germany's DAX adding 0.3%, but France's CAC 40 edged lower.