Gold retreats from three-month high as investors eye US inflation data

Gold prices declined after achieving a three-month peak, as investors turned their attention toward forthcoming US inflation data and market signals. Spot gold plummeted 0.2 percent to $4,640.39 per ounce, following a high of $4,668.19 earlier in the day. US gold futures remained stable at $4,696. The surge in gold prices last week was triggered by the US Treasury Department's decision to double the size of long-term bond buybacks to bolster market liquidity, generating concerns about potential dollar devaluation.

According to Reuters, TD Securities predicted in a note that apprehensions over a weaker US dollar may bolster gold in the coming weeks, as the Federal Reserve has yet to indicate a clear willingness to address rising inflation. The note cautioned that it would be premature for gold to attain its $5,350 per ounce objective, given the risk of eventual short-term interest rate increases.

The US personal consumption expenditures report, the Federal Reserve's favored inflation indicator, is scheduled for release on Wednesday. Other precious metals experienced declines as well: spot silver dropped 1.3 percent to $68.01 per ounce, platinum fell 1.2 percent to $1,853.85, and palladium decreased approximately 1 percent to $1,345.26.