Gold Prices Experience Decline Amid Profit-Taking and Upcoming Inflation Data
On Monday, gold prices experienced a decline as traders capitalized on recent highs reached by the yellow metal. Market participants are closely watching an essential report on inflation in the United States, which is scheduled for release later this week.
In the spot market, gold prices fell by 0.4 percent, settling at $2,925.63 per ounce by 02:04 GMT. Notably, gold reached an all-time high of $2,954.69 on Thursday.
Meanwhile, gold futures in the United States saw a decrease of 0.5 percent, trading at $2,939.30.
“Gold’s inability to leverage the general risk-averse sentiment in the market was due to profit-taking activities that offset any increase in safe-haven demand,” commented market analysts.
In recent remarks, U.S. President Donald Trump indicated plans to announce additional customs duties, potentially further complicating trade relationships. This includes adding wood and forest products to an expanding list of tariffs that already encompasses imported vehicles, semiconductors, and pharmaceuticals. This follows a recent 10% tax levied on Chinese imports and a 25% duty on steel and aluminum.
Traders are paying close attention to the interest rate policies of the U.S. Federal Reserve, as Trump’s trade policies are perceived to have inflationary implications. Should inflationary pressures compel the Federal Reserve to increase interest rates, the appeal of gold as a non-yielding asset may diminish.
Additionally, in the metals market, silver prices decreased by 0.4 percent to $32.42 per ounce, platinum fell by 0.2 percent to $967.71, and palladium saw a decline of 0.3 percent, trading at $965.97.
| Metal | Price (Per Ounce) | Change (%) |
|---|---|---|
| Gold (Spot) | $2,925.63 | -0.4% |
| Gold (Futures) | $2,939.30 | -0.5% |
| Silver | $32.42 | -0.4% |
| Platinum | $967.71 | -0.2% |
| Palladium | $965.97 | -0.3% |
The market remains attentive to implications of these developments, particularly as economic indicators continue to influence investor sentiment and trading strategies.
