Gold prices fell on Monday as investors took profits after prices hit a seven-week high in the previous session, while markets awaited U.S. inflation data for fresh clues about the Federal Reserve’s interest-rate path.
Spot gold fell 0.5% to $4,322.28 per ounce. Prices touched their highest level since June 17 on Friday after weaker-than-expected U.S. jobs data. U.S. gold futures fell 0.4% to $4,381.60 on Monday.
The data showed that the U.S. economy unexpectedly lost jobs in July, while previously reported employment figures for the previous two months were sharply revised downward.
Futures markets subsequently priced in lower odds of an interest-rate cut at the Federal Open Market Committee’s September 15–16 meeting, falling from a probability of more than 50% to below that level.
Lower interest rates make gold more attractive compared with yield-bearing assets, as the precious metal does not generate income.
Key U.S. economic data due this week include the Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday.
On the geopolitical front, Iran said it was nearing a final agreement with Oman to establish new maritime routes between the two countries through the Strait of Hormuz, but reiterated that the United States must meet several conditions before the strategic waterway can be reopened.
Among other precious metals, spot silver fell 0.2% to $63.45 per ounce, platinum declined 0.1% to $1,742.50, and palladium dropped 1.1% to $1,362.97.
Reuters
