Ammon News - 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 0.3% at $4,330.46 per ounce, as of 0443 GMT. Prices ​hit their highest since June 17 on Friday after weak U.S. nonfarm ​payrolls data.

U.S. gold futures fell 0.2% to $4,390.60 on Monday.

"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," said Tim Waterer, chief market analyst at KCM Trade.
Data showed the U.S. economy unexpectedly shed jobs in July and ​previously reported job gains for the prior two months were revised sharply lower.

Futures ​markets then flipped the odds of a rate hike at the September 15-16 Federal Open Market ‌Committee ⁠meeting from likelier-than-not to a worse-than-even chance.

A lower interest rate environment boosts the attractiveness of gold against income-generating assets, as bullion itself earns no interest.

Key U.S. data scheduled for release this week include the Consumer Price Index (CPI) on Wednesday and the Producer ​Price Index (PPI) on ​Thursday.

"Soft readings would ⁠strengthen the case for a rate hold and clear a path for further upside in gold... Middle East uncertainty remains a ​lingering risk factor, as any renewed escalation that drives oil ​prices up ⁠could quickly pressure the metal," said Waterer.

On the geopolitical front, Iran said it was nearing a final pact with Oman defining new shipping lanes between them through the Strait of ⁠Hormuz ​but repeated that the U.S. must meet several ​conditions before the strategic waterway is reopened.

Spot silver rose 0.3% to $63.77 per ounce and platinum gained 0.2% to $1,748.80, ​while palladium slipped 1% to $1,364.55.


Reuters