Gold takes a breath after record highs ahead of US inflation data release

Gold prices caught their breath today, Monday, after a series of record highs that came against the backdrop of a slowdown in the labor market in the United States and statements from the Federal Reserve (the US central bank), while traders awaited the inflation report in the United States in search of new indicators on the possible date for reducing interest rates. .

According to Reuters, gold settled in spot transactions at $2,177.24 per ounce by 0602 GMT, while US gold futures fell 0.1 percent to $2,183.90.

Gold recorded an unprecedented level of $2,194.99 for the fourth day in a row on Friday, after data showed a slowdown in the labor market in the United States.

Matt Simpson, chief analyst at City Index, said: “After major speculators increased their net exposure at the fastest weekly pace in 3.5 years last Tuesday, it is clear that gold is enjoying interest.”

He pointed out that prices will hold at high levels awaiting consumer price inflation data for February, scheduled to be released tomorrow, Tuesday, as this is likely to be the biggest driver of gold prices throughout the week, given that the US Central Bank is currently in a period of silence.

Any reading showing a decline in the consumer price index would enhance the chances of an early interest rate cut, which would support gold prices. US Federal Reserve Chairman Jerome Powell appeared more confident about lowering interest rates in the coming months during his testimony before Congress last week.

Low interest rates enhance the attractiveness of the precious metal, which does not generate returns.

As for other precious metals, platinum rose in spot transactions by 0.1% to $913.16 per ounce, palladium stabilized at $1019.54, and silver saw no significant change at $24.30.