Gold drifts lower from seven-week peak, US inflation data looms

Gold  |  2026-08-10 09:05:25   |   By

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.

Summary

Summary Points

  • Analysts call Monday's dip profit-taking and "natural stabilisation," not a shift in sentiment, with gold expected to hold support above $4,300 near term.
  • July's jobs report showed an unexpected loss of U.S. jobs, with the prior two months' gains revised sharply lower.
  • A lower-rate environment tends to boost gold's appeal versus yield-bearing assets, since bullion pays no interest.
  • Soft CPI/PPI readings this week could reinforce the case for the Fed to hold rates, a scenario analysts say could support further gains in gold.
  • Iran said it is nearing a final agreement with Oman on new Strait of Hormuz shipping lanes, though it reiterated the U.S. must meet several conditions before the waterway fully reopens.
  • Renewed Middle East escalation that pushes oil prices higher remains a risk factor that could pressure gold, per Waterer.

Gold Slips From Seven-Week High as Traders Await U.S. Inflation Data

Gold eased on Monday as investors booked profits after prices touched a seven-week high, with markets now turning to this week's U.S. inflation reports for clues on the Federal Reserve's next move.

What Readers Should Know

  • Spot gold fell 0.5% to $4,322.28 per ounce as of 0200 GMT Monday, pulling back after hitting a seven-week high the previous session.
  • The rally to that high came Friday after weaker-than-expected U.S. jobs data, with gold touching its strongest level since June 17.
  • U.S. gold futures dropped 0.4% to $4,381.60 on Monday.
  • Odds of a Fed rate hike at the September 15–16 FOMC meeting flipped from likelier-than-not to a worse-than-even chance.
  • U.S. inflation data — the Consumer Price Index on Wednesday and the Producer Price Index on Thursday — are the week's key catalysts.
  • Silver, platinum, and palladium all edged lower alongside gold.

Why Gold Prices Slipped Monday

MONTREAL (Scrap Monster): 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% at $4,322.28 per ounce as of 0200 GMT. Prices hit their highest 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.

What Analysts Are Saying

'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.

What the July Jobs Data Showed

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.

Also Read: Gold falls nearly 2% as traders eye U.S. consumer inflation data for rate cues  |  Gold Prices Fall Below $4,000 Amid Fed, Geopolitical Uncertainty

What Happens Next: CPI and PPI This Week

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.

Iran-Oman Talks on Strait of Hormuz

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.

Other Precious Metals Prices

Spot silver fell 0.2% to $63.45 per ounce, platinum lost 0.1% to $1,742.50, and palladium slipped 1.1% to $1,362.97.

People Also Ask

What is the current spot price of gold?

Spot gold traded at $4,322.28 per ounce as of 0200 GMT Monday, down 0.5% on the day.

Why did Fed rate-hike odds for September change?

Odds of a rate hike at the Fed's September 15–16 meeting shifted from likelier-than-not to a worse-than-even chance after weak U.S. jobs data.

What U.S. economic data is due this week?

The Consumer Price Index (CPI) is due Wednesday and the Producer Price Index (PPI) is due Thursday.

How are silver, platinum, and palladium trading?

Silver fell 0.2% to $63.45 per ounce, platinum lost 0.1% to $1,742.50, and palladium slipped 1.1% to $1,362.97.

What is happening with Strait of Hormuz shipping lanes?

Iran said it is nearing a final pact with Oman on new shipping lanes through the strait but reiterated that the U.S. must meet several conditions before it is reopened.

Courtesy: www.reuters.com

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