Gold Slips as Inflation Data Takes Center Stage in Fed Decision

Gold prices slipped on Monday as investors locked in gains after a strong weekly rally, with attention shifting from a weaker US labour market to inflation data that could determine whether the Federal Reserve stays on hold in September.

Spot gold fell 0.5% to $4,322.28 an ounce by 2 am GMT, while US futures declined 0.4% to $4,381.60.

The recent rally has been driven by a weakening US labour market, which has reduced expectations for another near-term rate increase from the Federal Reserve.

However, Wednesday's consumer-price report is now the main test of gold's support above $4,300.