Gold dips as traders await US inflation data for Fed rate cut cues Production of gold at Krastsvetmet precious metals plant in Krasnoyarsk (Reuters) – Gold prices fell 1% on Monday on profit-taking, as investors looked forward to key inflation figures this week for clues on the U.S. interest rate cuts this year. Spot gold fell 1% to $2,336.76 per ounce by 1745 GMT. It had hit its highest level since April 22 on Friday. U.S. gold futures settled 1.3% lower at $2,343. “This could be some people exiting the gold market prior to some of these risk events such as (Fed chief) Jerome Powell speaking, PPI and CPI all coming out this week,” said Phillip Streible, chief market strategist at Blue Line Futures. “Gold bulls are rightfully concerned that the Federal Reserve needs weaker inflation data, not just weaker employment figures, to justify cutting rates,” said Tai Wong, a New York-based independent metals trader. The yellow metal had risen more than 1% last week, following weak jobs data, supporting bets of a U.S. rate cut this year. A stronger majority of economists polled by Reuters expect the Fed to cut its key interest rate twice this year, starting in September. Traders are now pricing in about a 63% chance of a rate cut in September, according to the CME FedWatch Tool. Lower interest rates reduce the opportunity cost of holding non-yielding gold. Markets focus this week will be on the U.S. Producer Price Index (PPI) data on Tuesday, followed by the Consumer Price Index (CPI) data due on Wednesday. Among other precious metals, spot silver gained 0.3% to $28.23 per ounce, while palladium fell 1.7% to $961.50. Platinum rose above the key level of $1,000 per ounce to a near one-year high. It was up 0.6% at $1,000.55 per ounce. However, consultancy Metals Focus expects average prices for platinum and palladium to fall this year compared with 2023 despite another year of structural deficit. BHP Group, the world’s largest listed miner, said Anglo American has rejected a revised buyout offer valuing the company at 34 billion pounds ($42.67 billion). « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Fed's Rate Hikes Propel Global Shift Away from U.S. Dollar, Says Atlantic Council READ MORE Gold price rally could cut India’s demand to four-year low -WGC READ MORE SSR Mining Stops Gold Production after Landslide in Turkey READ MORE As Borrowing Costs Soar, Equity Becomes the New Frontier for Corporate Finance READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment