ع
According to Reuters, gold slipped on Monday as investors took profits after prices hit a seven-week high in the previous session, while markets looked to U.S. inflation data for fresh clues on the Federal Reserve’s interest rate path. Spot gold was down 0.5 percent at $4,322.28 per ounce as of 0200 GMT, Reuters data showed. U.S. gold futures fell 0.4 percent to $4,381.60. The decline followed a rally on Friday prompted by weaker-than-expected U.S. jobs data that heightened expectations for policy easing.
Reuters reported that the U.S. economy unexpectedly shed jobs in July, with previously reported job gains for the prior two months revised sharply lower. This prompted futures markets to shift the odds of a rate hike at the September Federal Open Market Committee meeting from likelier than not to worse than even. A lower interest rate environment typically increases the appeal of gold, which yields no interest, the news agency noted in its assessment of market dynamics.
Tim Waterer, chief market analyst at KCM Trade, told Reuters that gold was edging slightly lower as it succumbed to some profit-taking following the previous week’s gains. “Gold is edging slightly lower as it succumbs to some profit-taking following last week’s strong NFP-inspired gains. This looks like a natural stabilisation rather than a meaningful shift in sentiment – I expect gold to remain supported above the $4,300 level in the near term,” Waterer said. He added that soft readings on the upcoming data would strengthen the case for a rate hold and clear a path for further upside in gold.
Key U.S. data scheduled for release this week include the Consumer Price Index on Wednesday and the Producer Price Index on Thursday, Reuters reported. Waterer highlighted to the news agency that Middle East uncertainty remains a lingering risk factor. Any renewed escalation that drives oil prices up could quickly pressure the metal, according to the analyst’s comments.
A Reuters dispatch indicated that Iran said it was nearing a final pact with Oman defining new shipping lanes between them through the Strait of Hormuz. The country repeated that the United States must meet several conditions before the strategic waterway is reopened. These developments contribute to the broader factors influencing investor sentiment toward safe-haven assets such as gold.
Reuters market figures showed spot silver fell 0.2 percent to $63.45 per ounce. Platinum lost 0.1 percent to $1,742.50 and palladium slipped 1.1 percent to $1,362.97. The movements across precious metals came as traders weighed both economic indicators and geopolitical signals in their positioning.
