Gold prices were steady on Monday, as investors awaited US inflation data for clues on the pace of central bank monetary tightening.
Spot gold was trading at $1,816.60 per ounce, up 0.1%. US gold futures were up 0.2% at $1,817.70 per ounce.
The US Consumer Price Index (CPI) is due to be released on Tuesday. Economists expect the index to rise 8.8% year-on-year in May, up from 8.6% in April.
A higher-than-expected inflation reading could boost gold prices, as it would increase the likelihood of more aggressive monetary tightening by the US Federal Reserve.
However, a weaker reading could weigh on gold prices, as it would reduce the need for the Fed to raise interest rates.
Other precious metals were also steady on Monday. Silver was up 0.2% at $21.45 per ounce, while platinum was up 0.1% at $937.30 per ounce.
Palladium was down 0.3% at $1,886.20 per ounce.
Here are some of the factors that could affect the gold price in the near future:
- US inflation data: The release of US inflation data on Tuesday will be a key event for gold prices. A higher-than-expected reading could boost gold prices, while a weaker reading could weigh on them.
- Interest rate hikes: The US Federal Reserve is expected to continue raising interest rates in an effort to combat inflation. This could weigh on gold prices, as it would make gold a less attractive investment.
- Geopolitical risks: Gold is seen as a safe haven asset, so it could be in demand if there are any geopolitical tensions.
- Economic growth: Gold is sensitive to economic growth. If the global economy slows down, it could boost gold prices.
Overall, the outlook for gold prices is mixed. The metal could be in demand if there are any geopolitical tensions or if the global economy slows down. However, it could also be weighed down by interest rate hikes.