XAU/USD climbs 0.5% as geopolitical tensions and upcoming US inflation figures drive cautious trading.
Gold prices advanced early Monday as delays in reopening the Strait of Hormuz and anticipation of US inflation data kept traders on edge. The XAU/USD pair rose 0.5% to $4,352 after hitting a low of $4,316, supported by oil-driven inflation concerns and Federal Reserve policy speculation.
The US Dollar Index (DXY) gained 0.14% to 99.75, reflecting modest greenback strength. Last week’s weaker-than-expected Nonfarm Payrolls report, which showed a 23K job decline versus an 80K forecast, led to downward revisions for May and June. Markets now await July’s Consumer Price Index (CPI), expected to ease to 3.4% YoY from 3.5%, with core CPI projected at 2.5%.
Investors are also monitoring Thursday’s Producer Price Index and Initial Jobless Claims, forecast to rise to 201K from 199K. The data will shape Fed rate-cut expectations ahead of the next policy meeting.