- Gold prices fell in early global trading today, Monday, as investors awaited the release of important inflation data in the United States that may give an indication of the possible timing of the Federal Reserve’s first cut of interest rates.
- The price of the precious metal in spot transactions fell by 0.2% to $2,354.77 per ounce, and US gold futures contracts also fell by 0.6% to $2,361.
- The previous session witnessed gold recording its highest level in two weeks.
- Producer price index data in the United States is scheduled to be released tomorrow, Tuesday, followed by consumer price index data on Wednesday.
- After weaker than expected US jobs data for April, as well as last week's jobs report, expectations increased that the US Central Bank would adopt rate cuts this year.
- Traders expected that the US Central Bank would begin a monetary easing cycle in September. Low interest rates reduce the opportunity cost of holding gold.
- As for other precious metals, silver fell in spot transactions by 0.4% to $28.03 per ounce, platinum also fell by 0.1% to $992.89, while palladium stabilized at $978.03.
