Gold eases from seven-week peak, US inflation data looms

Gold prices fell on Monday as traders cashed in profits following a seven-week high the previous day. Investors turned their attention to upcoming US inflation data for insights into the Federal Reserve's interest rate trajectory. Spot gold dropped 0.3% to $4,330.46 per ounce by 04:43 GMT. The metal had peaked on Friday at its highest level since June 17, driven by disappointing US non-farm payrolls data.

Gold futures also declined 0.2% to $4,390.60. Analysts noted that the recent rally was likely profit-taking rather than a significant shift in sentiment, predicting gold would stay above the $4,300 mark in the short term. The US economy unexpectedly cut jobs in July, with earlier reported gains for two months revised downward. This shift in the odds of a September Federal Open Market Committee meeting hike reduced gold's appeal compared to income-generating assets.

Upcoming US economic data, such as the Consumer Price Index on Wednesday and Producer Price Index on Thursday, could further influence gold prices. Geopolitical tensions, specifically regarding Iran's potential deal with Oman on shipping lanes through the Strait of Hormuz, continue to pose risks, as oil price fluctuations could impact the metal's value.

Silver rose 0.3% to $63.77 per ounce, while platinum increased 0.2% to $1,748.80; palladium slipped 1% to $1,364.55.