Gold little changed as markets await key US inflation data

SEATTLE (Scrap Monster): Gold was little changed on Monday as market participants awaited key US inflation data due later this week for further clues on the Federal Reserve's interest rate path.

Spot gold was almost unchanged at US$4,424.40 per ounce, as of 0025 GMT. US gold futures for December delivery were down 0.1 per cent at US$4,471.60.

Data on Friday showed US job growth accelerated sharply in August while the unemployment rate held steady at 4.1 per cent, suggesting an improvement in the labour market after recent struggles and keeping a rate increase this month on the table. Gold prices slipped after the data.

Traders are pricing in a 58 per cent chance of a rate hike at the Fed's September 15-16 meeting, CME's FedWatch tool showed. While gold is typically viewed as an inflation hedge, higher interest rates tend to weigh on the appeal of non-yielding bullion.

US consumer and producer inflation reports are due this week. US President Donald Trump said on Friday that unless the Fed cuts interest rates, he would stop trading with countries with which the United States had a deficit.

Bank of England Governor Andrew Bailey said on Friday that weak productivity and shocks such as COVID-19 were behind a climb in public debt across advanced economies, which in turn was pushing up borrowing costs.

Perth Mint's gold product sales in August hit a three-month low, while silver sales slipped more than 31 per cent from a month earlier, the refiner said on Friday.

Among other metals, spot silver was flat at US$66.21 per ounce, platinum lost 0.7 per cent at US$1,807.38 and palladium declined 0.4 per cent to US$1,393.00.

Courtesy: www.reuters.com