Spot Gold retreated more than 0.5% on Monday amid light trading volumes, with markets in the US and China closed due to local public holidays.
Additionally, there has likely been some profit taking after Gold’s 2.5% surge on Friday.
US markets remain closed for the Presidents’ Day holiday, while Chinese markets are closed for the Lunar New Year holiday.
“Gold has given back some of Friday’s post-CPI gains today due to thinner trading conditions and a lack of fresh upside catalysts,” KCM Trade Chief Market Analyst Tim Waterer was quoted as saying by Reuters.
“It will likely require the dollar to resume its downtrend for gold to make a push in the direction of $6,000 before year end,” Waterer added.
Annual headline consumer inflation in the US has eased to 2.4% in January, the lowest level since May 2025, from 2.7% in December.
And, annual core CPI inflation has eased to 2.5% in January, the lowest rate since March 2021, from 2.6% in December.
Federal Reserve Bank of Chicago President Austan Goolsbee said last week that interest rates could be lowered, but highlighted that services inflation was still elevated.
Markets are now pricing in over 90% chance that the Fed will hold rates steady in March. Yet, investors are still pricing in 75 basis points of rate cuts this year, with the first likely in July.
Spot Gold was last down 0.61% on the day to trade at $5,012.00 per troy ounce.
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