Gold Stands Pat Ahead of Crucial US Inflation Data Release
Gold prices remained largely unchanged on Monday as markets awaited key US inflation data due later this week. The release of these figures will provide further clues about the Federal Reserve's interest rate path, which has been a topic of much speculation in recent weeks.
The spot price of gold was almost unchanged at $4,424.40 per ounce, while US gold futures for December delivery were down 0.1% at $4,471.60. The data on Friday showed that US job growth accelerated sharply in August, with the unemployment rate holding steady at 4.1%. This suggests an improvement in the labor market after recent struggles, and 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. However, 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 could provide further insight into the Fed's decision.