Gold climbs to nine-week high on buying momentum as inflation data looms
GLD•Gold rises to nine-week peak ahead of U.S. inflation data
Gold rose to a nine-week peak on Monday as bullish momentum and fear of missing out propelled prices forward, while investors awaited key U.S. inflation data to gauge the Federal Reserve's policy moves.
Spot gold XAU= rose 0.8% to $4,376.56 per ounce by 2:45 p.m. EDT (1845 GMT). It hit its highest level since June 5 earlier in the session. Prices logged a 2.4% gain on Friday, with labor department data showing an unexpected drop in U.S. nonfarm payrolls.
U.S. gold futures GCcv1 added about 0.5% to settle at $4,419.70.
Other precious metals gain as Iran comments on Hormuz reopening
Meanwhile, 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 other conditions before the strategic waterway is reopened.
Among other metals, spot silver XAG= rose 3.1% to $65.50 per ounce, platinum XPT= added 0.1% to $1,746.50, and palladium XPD= firmed 0.2% to $1,380.17.
Traders watch CPI and PPI after strong momentum and China buying
"The technical momentum right now is pretty strong for gold overall," said Bob Haberkorn, senior market strategist at StoneX.
"It's cautious trading, with China buying, and the July CPI and PPI report this week, and kind of a fear of missing out on a move back over 4,500 for the time being."
China's central bank stepped up gold purchases in July, adding the most bullion to its reserves since October 2023, official data showed last week.
Investors await the U.S. consumer price data due on Wednesday and producer price data on Thursday.
