Gold declines as investors await U.S. inflation figures

Spot Gold fell 0.7 per cent to $3,376.24 an ounce, while Gold Futures for December dropped 1.5 per cent to $3,438.22/oz

Gold prices declined in Asian trade on Monday as investors awaited crucial U.S. inflation readings and sought clarity from Washington over tariff rulings on bullion bars.

Spot Gold fell 0.7 per cent to $3,376.24 an ounce, while Gold Futures for December dropped 1.5 per cent to $3,438.22/oz by 05:51 GMT.

Last week, gold futures surged to a record high above $3,530/oz after the U.S. Customs and Border Protection ruled that standard 1-kilogram and 100-ounce gold bars would be subject to an import tariff.

Industry groups warned the move could harm global gold trade, particularly from Switzerland, the main refining hub.

The White House has said it would issue an executive order to clarify the tariff policy on bullion bars, easing some tension in futures markets.

Looking ahead, markets are focused on key U.S. inflation measures.

The July Consumer Price Index (CPI) is due Tuesday and is expected to show around a 0.2 per cent increase from June. The Producer Price Index (PPI) follows later in the week.

Traders await inflation readings for assessing the Federal Reserve’s policy, with rate cut expectations priced near 89 per cent for September.

Weak labour data released earlier in August strengthened rate cut bets.

Meanwhile, the U.S.-China tariff truce, which has prevented further escalation of duties, is set to expire on August 12.

While investors are optimistic about an extension, the outcome remains uncertain.

In other precious metals, Platinum Futures fell 0.6 per cent to $1,331.95/oz, while Silver Futures dropped 0.7 per cent to $38.275/oz.

Benchmark Copper Futures on the London Metal Exchange rose 0.3 per cent to $9,789.25 a ton, while U.S. Copper Futures were unchanged at $4.47 a pound.