Gold steady near US$4,400 as traders weigh US data, rate path

Gold prices hovered around US$4,370 per ounce in early Asian trading, unchanged from the previous week's near 1% gain. The steady price came as traders weighed the contrasting effects of cooling US economic data and energy-driven inflation on the Federal Reserve's interest rate decisions. Latest US data showed falls in both consumer sentiment and retail sales, which helped to ease concerns of an imminent rate hike, typically detrimental to non-yielding assets like gold.

However, uncertainty persisted over the global energy supply outlook, with heightened risks of monetary tightening.

In recent news, several ships were attacked in the Strait of Hormuz, while the US announced plans to impose new measures targeting Iran's economy. Despite these developments, vessels continue to navigate the strait, often disabling satellite transponders to evade detection. Iran and Oman are reportedly nearing an agreement on managing the vital waterway, though the US is not involved in these discussions.

Looking ahead, the Fed's July policy meeting minutes are set to be released on Wednesday, offering some insight into rate considerations. Gold's ascent above the US$4,000 mark has been fueled by renewed investor interest and increased central bank purchases, particularly from China. The metal briefly surpassed its 100-day moving average for the first time since April and has been trading near that level.

Spot gold remained flat at US$4,376 an ounce at 7:24am in Singapore. Silver saw a 0.6% increase, trading at US$65.08 an ounce, after a 2% gain last week. Platinum and palladium also rose. The Bloomberg Dollar Spot Index, a measure of the US dollar, slipped by 0.1%.