Gold Holds Steady Ahead of Key Inflation Data

New York - The price of gold remained largely unchanged on Monday as investors awaited key US inflation data due later this week. This data will provide further clues about the Federal Reserve's interest rate path.

Data released on Friday showed a sharp acceleration in US job growth and an unemployment rate holding steady at 4.1 per cent. These numbers suggest improvement in the labour market after recent struggles, keeping a rate increase in September on the table.

US consumer and producer inflation reports are due this week. With a 58 per cent chance of a rate hike priced into the market, gold prices slipped following Friday's job data. Higher interest rates tend to weigh on the appeal of non-yielding bullion.