Gold retreats from seven-week high as investors await US inflation data

Gold prices fell by 0.5% on Monday to $4,322.28 per ounce, retreating from a seven-week high reached in the previous session, as investors took profits and awaited the release of US inflation data later this week.

Tim Waterer, market analyst at KCM Trade, said the pullback was a natural stabilization following last week's strong gains, and he expects prices to remain supported above $4,300 per ounce in the near term.

Markets are awaiting the US Consumer Price Index on Wednesday and the Producer Price Index on Thursday, with expectations that the results will influence the direction of US interest rates.

Expectations for a US interest rate cut have strengthened after data showed the American economy unexpectedly lost jobs in July, boosting gold's appeal as a safe-haven asset.

Other precious metals decline

In today's trading, silver prices slipped 0.2% to $63.45 per ounce, platinum edged down 0.1% to $1,742.50, while palladium dropped 1.1% to $1,362.97 per ounce.