Gold Prices Tread Water Ahead of US Inflation Data

Gold prices remained largely unchanged on Monday as market participants awaited key US inflation data due later this week. The data will provide further clues on the Federal Reserve's interest rate path, which has been a major factor in gold's price movement lately.

The spot price of gold was almost flat at $4,424.40 per ounce as of 0025 GMT. US gold futures for December delivery were down 0.1% at $4,471.60. This comes after recent data showed US job growth accelerated sharply in August, with the unemployment rate holding steady at 4.1%. The strong labour market has kept a rate increase this month on the table.

Traders are pricing in a 58% chance of a rate hike at the Fed's September 15-16 meeting, according to CME's FedWatch tool. Higher interest rates tend to weigh on the appeal of non-yielding bullion like gold. US consumer and producer inflation reports are due this week, which will further influence market expectations.

Meanwhile, Perth Mint's gold product sales in August hit a three-month low, while silver sales slipped more than 31% from a month earlier. The refiner attributed the decline to weaker demand.