Gold Takes Breather After Seven-Week High Amid US Inflation Expectations

Gold prices edged lower on Monday, dipping 0.3% to $4,330.46 per ounce as investors took profits after hitting a seven-week high in the previous session.

The decline came despite weak US non-farm payrolls data, which had pushed gold prices to their highest since June 17 on Friday.

Tim Waterer, chief market analyst at KCM Trade, said that this is 'a natural stabilisation rather than a meaningful shift in sentiment,' and expects gold to remain supported above the $4,300 level in the near term.

The US economy unexpectedly shed jobs in July, and previously reported job gains for the prior two months were revised sharply lower.

This has flipped the odds of a rate hike at the September 15-16 Federal Open Market Committee meeting from likelier-than-not to a worse-than-even chance.