Gold little changed as markets await key US inflation data

New York markets saw gold prices remain relatively stable on Monday as investors awaited crucial U.S. inflation data expected later in the week. Spot gold was only marginally off at $4,424.40 per ounce at 0025 GMT, while December U.S. gold futures fell 0.1% to $4,471.60.

Data released on Friday indicated a sharp acceleration in U.S. job growth in August, with the unemployment rate holding steady at 4.1%. This suggested a positive labor market trend, potentially keeping the possibility of an interest rate increase at the Federal Reserve's September meeting in view. Traders currently estimate a 58% probability of such a rate hike by the Fed, according to CME's FedWatch tool.

While gold is commonly considered an inflation hedge, rising interest rates typically make the non-yielding metal less attractive. U.S. inflation reports, including both consumer and producer figures, are due this week.

U.S. President Donald Trump stated on Friday that if the Federal Reserve fails to cut interest rates, he would cease trading with nations that have a trade deficit with the United States. Bank of England Governor Andrew Bailey, also on Friday, attributed the increase in public debt among advanced economies to weak productivity and disruptions caused by COVID-19, which in turn was driving up borrowing costs.

Perth Mint's gold product sales in August declined to a three-month low, while silver sales fell by more than 31% compared to the previous month, according to the refiner's report on Friday. Among other metals, spot silver remained flat at $66.21 per ounce, while platinum fell 0.7% to $1,807.38 and palladium declined 0.4% to $1,393.00.