XAU/USD holds near $4,332 as traders await US inflation data after strong jobs report reinforced Fed policy expectations.
Gold prices remained nearly unchanged at $4,332 on Monday, trading above a daily low of $4,268. The metal’s stability reflects offsetting pressures from easing Middle East tensions and lingering inflation concerns ahead of key US economic data.
Last week’s stronger-than-expected Nonfarm Payrolls report bolstered the US Dollar and reinforced expectations for Federal Reserve policy. Traders are now focused on May’s Consumer Price Index, forecast to rise 4.2% year-over-year, following April’s 3.8% print. Rising oil prices, up over 1%, add to inflationary pressures, though a swift resolution to geopolitical conflicts could ease energy costs.
The US Dollar Index held flat near 100.0, while equities rallied, supporting gold’s positive correlation with risk assets. Yields and inflation fears continue to cap significant gains in the precious metal.