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

Gold prices hovered near US$4,370 per ounce on early Asian markets, showing minimal movement after a 1% increase the previous week. Traders were considering the impact of subdued US economic data and rising energy-linked inflation on the Federal Reserve's interest-rate decisions. The latest US reports indicated falling consumer sentiment and retail sales, which helped ease concerns about an imminent rate hike, generally unfavorable for bullion.

However, energy supply uncertainties persisted, keeping the possibility of monetary tightening in play. Recent attacks on ships in the Strait of Hormuz and the US' preparation for new sanctions against Iran's economy added to the volatility. Despite these risks, vessels were still exiting the strait, often with satellite transponders switched off to avoid detection.

The Federal Reserve's minutes from their July policy meeting, due for release on Wednesday, might offer more insight into potential rate movements. Bullion's climb above the US$4,000 mark was fueled by renewed investor interest and increased central bank purchases, notably by China. The metal briefly rose above its 100-day moving average for the first time since April and remained close to that level.

Gold prices were stable at US$4,376 an ounce at 7:24am in Singapore. Silver experienced a 0.6% increase, reaching US$65.08 an ounce, after gaining nearly 2% last week. Both platinum and palladium also saw gains. The Bloomberg Dollar Spot Index, a measure of the US dollar, saw a 0.1% decrease.