Gold slips 0.3% from 7-week high as traders await US CPI
Why it matters: Softer inflation data could reinforce bets the Fed holds rates in September, a backdrop that has supported bullion above $4,300.
Gold edged lower Monday after investors locked in gains from last week’s rally, with spot prices down 0.3% to $4,330.46 an ounce after reaching a seven-week high on Friday. US gold futures fell 0.2% to $4,390.60. The pullback came as markets turned to this week’s US inflation reports for direction on the Federal Reserve’s next move. After weak July payrolls data and sharp downward revisions to prior months, traders reduced expectations for a September rate increase. Lower rates typically help gold because bullion offers no yield. Markets are also watching the Middle East after Iran moved closer to a shipping-lanes pact with Oman in the Strait of Hormuz.