Gold slipped below $5,020 per ounce on Monday, retracing part of last session’s gain of more than 2% that followed weaker-than-expected US CPI data. The softer inflation reading strengthened expectations for Federal Reserve rate cuts this year, with markets now pricing in just over two reductions.
Investors are now looking ahead to the release of the FOMC meeting minutes, the US advance GDP estimate, and PCE inflation figures for clearer signals on the timing of the Fed’s next move.
On the geopolitical front, traders are watching renewed nuclear talks between the US and Iran, as well as US-led negotiations aimed at ending the war in Ukraine, both set to resume on Tuesday. Outcomes from these discussions could affect risk appetite and demand for safe-haven assets.
Despite recent volatility, gold remained underpinned by persistent geopolitical tensions, robust central bank purchases, and a continued shift by investors away from sovereign bonds and major currencies.
