Gold Holds Near Seven-Week High as Markets Await US Inflation Data

Gold prices were little changed in early Asian trading on Monday, holding near a seven-week high reached on Friday. The precious metal gained more than 7% last week after weaker-than-expected US jobs data reduced the likelihood of further interest rate hikes.

Spot gold was last quoted at $4,339.59 per ounce, while US gold futures were flat at $4,399.40.

Friday's data showed the US economy unexpectedly shed jobs in July, with prior months' gains also revised sharply lower. Following the release, futures markets shifted their expectations, making a rate hike at the September Federal Reserve meeting less likely than a pause.

A lower interest rate environment tends to support gold, as the metal does not yield interest and becomes more attractive relative to income-generating assets.

Federal Reserve Bank of Richmond President Thomas Barkin commented that the July hiring figures were consistent with recent trends.

Investors now turn their attention to key US inflation reports due this week — the Consumer Price Index (CPI) and Producer Price Index (PPI) — for further clues on the central bank's policy path.

In other metals, silver rose 0.5% to $63.85 per ounce, platinum gained 0.2% to $1,748.25, while palladium slipped 0.5% to $1,371.16.

On the geopolitical front, Iran said it was close to a final agreement with Oman on new shipping lanes through the Strait of Hormuz, though it reiterated that the US must meet conditions including compensation and an end to sanctions before the waterway is reopened.