Gold pulled back on Monday as investors locked in gains following a strong run last week, with markets now watching US inflation data for clues on the Federal Reserve’s next move on interest rates.
Spot gold dropped 0.5% to $4,322.28 per ounce by 02:00 GMT. Prices had touched their highest level since 17 June on Friday, lifted by a weaker-than-expected US jobs report. US gold futures fell 0.4% to $4,381.60 on Monday.
Tim Waterer, chief market analyst at KCM Trade, said the pullback was a routine reset rather than a shift in sentiment. “Gold is easing a little as it experiences some profit-taking following the strong gains last week on the back of non-farm payrolls data. This looks like natural consolidation, not a meaningful change in sentiment, and I expect gold to remain supported above $4,300 in the near term,” he said.
The jobs report showed the US economy unexpectedly shed jobs in July, with figures for the two preceding months also revised sharply downward. Following the release, futures markets trimmed the probability of a Federal Reserve rate hike at the 15–16 September FOMC meeting, dropping it from above 50% to below that threshold.
