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Pedro Goncalves writes:
Gold futures (GC=F) slipped 0.4% to $5,027.80 a troy ounce, while spot prices lost 0.7% to $5,006.65 at the time of writing.
“Gold has given back some of Friday’s post-CPI gains today due to thinner trading conditions and a lack of fresh upside catalysts,” said Tim Waterer, chief analyst at KCM, referring to the US consumer price inflation data. He also pointed to profit-taking on the day.
US markets are closed for the Presidents’ Day holiday, while markets in China were shut for the Lunar New Year holiday, leading to lighter trading conditions.
On Friday, Austan Goolsbee, president of the Federal Reserve Bank of Chicago, said interest rates could fall, although he cautioned that services inflation remained elevated.
Investors expect the Federal Reserve to hold rates steady at its next meeting on 18 March.
Non-yielding bullion typically benefits from a lower interest rate environment.
“It will likely require the dollar to resume its downtrend for gold (GC=F) to make a push in the direction of $6,000 before year-end,” Waterer said.