Spot gold fell 0.6% to $4,169.10 an ounce on Monday after reaching a one-week high, pressured by a firmer dollar and higher oil prices. Investors awaited US CPI data due Wednesday and PPI and retail sales data due Thursday.
Spot gold fell 0.6% to $4,169.10 per ounce by 1:45 p.m. EDT, after earlier reaching its highest level since October 2. December US gold futures settled 0.6% lower at $4,190.60 per ounce.
The dollar held near a one-and-a-half-year high, while investors awaited US inflation data and remarks from Fed Chair Kevin Warsh to assess the interest-rate outlook. The US government and bond market were closed for Columbus Day. The CPI report is due Wednesday, followed by PPI and retail sales data on Thursday.
Markets largely expected the Fed to hold rates later in October, while assigning an 87.7% probability of a hike by December, according to CME's FedWatch tool. Analyst Jim Wyckoff said he did not expect the reports to show easing inflation and that they would probably lean bearish for metals. Silver fell 1% to $60.22 per ounce, platinum eased 0.2% to $1,684.20, and palladium dropped 0.5% to $1,141.90.
