Gold dips as traders await US inflation data for more Fed rate cut cues
"Gold bulls are rightfully concerned that the Federal Reserve needs weaker inflation data, not just weaker employment figures, to justify cutting rates."
dipped on Monday on profit-taking as investors looked forward to key this week for clues on the U.S. this year.Spot gold fell 0.7% to $2,342.95 per ounce by 1442 GMT. It had hit its highest level since April 22 on Friday.
U.S. gold futures fell more than 1% to $2,349.
"Gold is giving up some of last week's gains on profit-taking ahead of this week's key CPI and ," said Tai Wong, a New York-based independent metals trader.
"Gold bulls are rightfully concerned that the Federal Reserve needs weaker inflation data, not just weaker employment figures, to justify cutting rates."
The yellow metal had risen more than 1% last week, following weak jobs data, supporting bets of a U.S. rate cut this year.
A stronger majority of economists polled by Reuters expect the Fed to cut its key interest rate twice this year, starting in September.
Traders are now pricing in about a 66% chance of a rate cut in September, according to the CME FedWatch Tool. Lower interest rates reduce the opportunity cost of holding .
Markets focus this week will be on the U.S. Producer Price Index (PPI) data on Tuesday, followed by the Consumer Price Index (CPI) data due on Wednesday.
Among other , spot silver gained 0.6% to $28.33 per ounce, while palladium fell 0.4% to $973.50.
rose above the key level of $1,000 per ounce to a near one-year high. It was up 1.4% at $1,007.55 per ounce.
However, consultancy expects average prices for platinum and palladium to fall this year compared with 2023 despite another year of structural deficit.
, the world's largest listed miner, said has rejected a revised buyout offer valuing the company at 34 billion pounds ($42.67 billion). (Reporting by Rahul Paswan and Brijesh Patel in Bengaluru; Editing by Shilpi Majumdar)
