Gold Pulls Back from Seven-Week High Amid US Inflation Looming

Gold prices pulled back on Monday from their seven-week high as investors took profits following a rally driven by weaker-than-expected US employment data. Spot gold declined 0.5% to $4,322.28 per ounce as of 0200 GMT, while U.S. gold futures fell 0.4% to $4,381.60.

According to Tim Waterer, chief market analyst at KCM Trade, the slight decline reflects profit-taking after last week's gains tied to the jobs report. He characterized the move as a natural stabilization rather than a shift in sentiment, adding that he expects gold to remain supported above the $4,300 level in the near term.

Soft readings in this week's US inflation reports could strengthen the case for holding rates steady and clear a path for further upside in gold. Waterer also pointed to Middle East uncertainty as a lingering risk, saying any renewed escalation that pushes oil prices higher could quickly pressure the metal.