Spot gold was almost flat at $2,323.87 per ounce, and U.S. gold futures dropped 0.1% to $2,344.40
Gold prices were little changed on Monday as traders awaited more U.S. economic data this week after a recent report showed that inflation stabilised and lifted hopes for the Fed to reduce interest rates later in 2024.
Spot gold was almost flat at $2,323.87 per ounce, as of 0752 GMT. Bullion was nearly 2% higher in May.
U.S. gold futures dropped 0.1% to $2,344.40.
The short-term catalyst is going to be the jobs data and if it shows a little bit of slack building in the labour market, you know that is going to be good for gold prices, according to Kyle Rodda, a financial market analyst at Capital.com.
Investors will look at the Institute of Supply Management’s (ISM) nationwide PMI number expected at 1400 GMT, Wednesday’s ADP employment report and non-farm payrolls data due on Friday to gauge the U.S. economy’s health and if it will deter the Federal Reserve from reducing rates in September.
Gold is getting a little bit of support after the marginally softer-than-expected PCE numbers supported the notion that the Federal Reserve can cut rates this year, Rodda added.
Data on Friday showed that the U.S. inflation had stabilised in April, raising bets for a rate cut in September. Traders are currently pricing in around a 53% probability of a cut in September, versus nearly 49% before the report.
While bullion is considered an inflation hedge, higher rates increase the opportunity cost of holding the non-yielding asset.
Spot gold may break support at $2,319 per ounce, and fall towards $2,302, as per Reuters technical analyst Wang Tao.
Spot silver dropped 0.8% to $30.14 per ounce, platinum was 0.7% lower at $1,030.00 and palladium shed 1.4% to $900.30.
