Gold Prices Weaken as Inflation Data Looms

Gold prices softened slightly in early U.S. trading Monday as investors consolidated Friday's payroll-led precious-metals rally ahead of this week's U.S. inflation data.

The latest positioning remains centered on last week's U.S. labor-market shock, which saw July nonfarm payrolls fall by 23,000 and the unemployment rate rise to 4.1%.

The market-implied probability of a September Fed rate hike dropped to about 44%, down from roughly two-thirds a week earlier.

The Strait of Hormuz remains a key geopolitical input for oil prices, with Iran insisting that the U.S. meet conditions before the waterway fully reopens.