Gold retreats as markets await key US inflation data
GLD•Spot gold fell 0.2% to $4,185.13 an ounce on Monday as investors awaited US CPI data on Wednesday and PPI and retail sales data on Thursday. Traders priced in a 19% chance of an October rate hike and an 84% probability of an increase by December.
1. Gold eases ahead of data
Spot gold fell 0.2% to $4,185.13 per ounce by 0714 GMT, after reaching its highest level since October 2 earlier in the session. US gold futures for December delivery also dropped 0.2%, to $4,209.70.
2. Investors watch inflation
Markets are awaiting the US Consumer Price Index report on Wednesday, followed by the Producer Price Index and retail sales data on Thursday. Traders see a 19% chance of a rate hike in October and an 84% probability of an increase by December, according to CME’s FedWatch tool. KCM Trade chief market analyst Tim Waterer said a cooler-than-expected inflation reading would be the clearest near-term catalyst for gold.
3. Other market factors
The US dollar held near its strongest level in a year and a half, making gold more expensive for buyers using other currencies. Oil prices fell after President Donald Trump announced an energy ceasefire between Russia and Ukraine, though Ukrainian President Volodymyr Zelenskiy said he was waiting to see details. Spot silver rose 0.2%, platinum gained 0.8% and palladium climbed 1%.
