Gold Pulls Back from Seven-Week High Amid Profit-Taking and Inflation Fears
Gold prices retreated on Monday after reaching a seven-week high in the prior session. The pullback came as investors locked in gains following the rally, according to Tim Waterer, chief market analyst at KCM Trade.
The slight decline reflects profit-taking after last week's gains tied to weaker-than-expected U.S. employment data, Waterer said. He characterized the move as a natural stabilization rather than a shift in sentiment and expects gold to remain supported above $4,300 in the near term.
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. This comes ahead of key U.S. inflation figures for signals about the Federal Reserve's next policy move.
Waterer noted that soft readings in upcoming reports would strengthen the case for holding rates steady and could clear a path for further upside in gold. He also pointed to Middle East uncertainty as a lingering risk, saying any renewed escalation that pushes oil prices higher could quickly pressure the metal.