Gold futures in New York closed lower on Monday, with the COMEX gold contract for December delivery falling $16.50, or 0.40%, to settle at $4,090.50 per ounce, amid uncertainty over the Middle East situation and worries that inflation could pick up again. Analysts at Marex noted that gold prices have been trading in a range of $4,000 to $4,200 for more than a month, with the market watching July inflation data that is expected to reverse the slowdown seen in June. Meanwhile, the latest Fed meeting was not unanimous, with three members supporting a 0.25% rate hike because inflation has remained above the 2% target for more than five years, and the New York Fed president signaled readiness to raise rates if inflationary pressures do not ease. The Middle East situation remains tense after Iran rejected talks with the United States, contradicting statements by President Trump. Investors are also awaiting the July nonfarm payrolls report on Friday, which is expected to show an increase of 88,000 jobs and an unemployment rate steady at 4.2%.
Hawkish Fed signals and inflation worries may lead to higher rates, pushing yields up.
Hawkish Fed signals and inflation worries may lead to higher rates, pushing yields up.
Gold falls on inflation and rate hike concerns, with Middle East tensions providing limited support.