Gold prices held steady during Asian trading on Monday, hovering near record highs as traders looked ahead to crucial U.S. interest rate cues from upcoming inflation data.
Last week, gold experienced significant fluctuations due to increased volatility in broader financial markets, ultimately finishing the week with a slight gain. The metal also drew safe-haven demand amid escalating concerns about a potential larger conflict in the Middle East and Ukraine’s offensive against Russia.
Spot gold rose by 0.1% to $2,433.62 per ounce, while December gold futures remained steady at $2,472.20 per ounce as of 01:03 ET (05:03 GMT).
Gold Steadies with Key CPI Data Awaited
Spot gold remained within $50 of a record high. However, further gains were tempered by anticipation of the consumer price index (CPI) inflation data scheduled for release on Wednesday.
The CPI reading is expected to show a slight cooling of inflation in July, potentially giving the Federal Reserve more confidence to initiate interest rate cuts. Traders are divided on whether the central bank will opt for a 25 or 50 basis point cut in September.
Lower interest rates are generally favorable for gold, as they reduce the opportunity cost of holding the non-yielding metal.
