Gold slips 0.3% from 7-week high as traders await US CPI
Why it matters: A soft July inflation reading could keep the Fed on hold and support bullion above the $4,300 level.
Gold eased Monday after touching a seven-week high, with traders taking profits ahead of a key US inflation report that could reshape expectations for the Federal Reserve. Spot gold fell 0.3% to $4,330.46 an ounce, while US futures dropped 0.2% to $4,390.60. Markets are focused on Wednesday’s consumer price index report, which economists expect to show a 0.1% monthly rise in headline inflation and 0.2% in core prices. After July payrolls showed the US economy lost 23,000 jobs, traders cut back bets on a September rate increase. Lower rates generally help gold because bullion pays no interest. Analysts said softer inflation data would strengthen the case for the Fed to hold rates steady and could leave gold supported near $4,300.