Gold prices edged lower on Monday, with silver also declining, as markets continued to weigh the outlook for U.S. interest rates following the latest inflation figures.
At 04:25 ET (09:25 GMT), spot gold slipped 0.6% to $5,015.40 per ounce, while April gold futures fell 0.2% to $5,035.25 per ounce.
Spot silver declined 0.9% to $77.230 per ounce, and spot platinum dropped 1% to $2,057.10 per ounce.
Precious metals have experienced heightened volatility in recent weeks, marked by sharp price swings, and both gold and silver remain below the highs reached in late January.
Trading activity was subdued, with markets in China, South Korea, and the United States closed for the session.
Rate uncertainty fuels choppy trading
Gold and silver retained part of last week’s gains, supported by bargain hunting and a softer U.S. dollar. Escalating tensions between Washington and Tehran also boosted safe-haven demand.
However, the metals continue to trade well beneath their late-January peaks and have posted erratic moves as investors grapple with uncertainty surrounding the Federal Reserve’s policy direction.
Losses in gold late last month were initially triggered after U.S. President Donald Trump nominated Kevin Warsh to succeed Jerome Powell as Federal Reserve Chair when Powell’s term concludes in May.
Warsh has been viewed as less inclined toward aggressive monetary easing, prompting concerns that financial conditions in the U.S. may remain relatively tight in the years ahead.
“The market’s attention is gradually shifting to the potential impact of tariffs, which has yet to fully emerge in economic and inflation data, and doubts remain around future Fed credibility. Such a backdrop will intensify investors’ appetite for real assets like gold,” ANZ analysts said in a note, adding that their long-term view on gold remained largely positive.
Fed minutes and inflation data ahead
Market participants are now turning their attention to upcoming U.S. economic signals, beginning with the release of minutes from the Federal Reserve’s January meeting on Wednesday.
The minutes are expected to shed further light on policymakers’ thinking around interest rates, particularly as investors consider the possibility of a leadership transition at the central bank.
Later in the week, the December personal consumption expenditures (PCE) price index — the Fed’s preferred measure of inflation — will be published and is likely to play a key role in shaping expectations for the longer-term rate outlook.
Additional U.S. data releases scheduled this week include trade figures and industrial production numbers.