Gold prices moved modestly lower on Monday, with silver also under pressure, as markets continued to evaluate the trajectory of U.S. interest rates following the latest inflation readings.
As of 04:25 ET (09:25 GMT), spot gold declined 0.6% to $5,015.40 per ounce, while April gold futures slipped 0.2% to $5,035.25 per ounce.
Spot silver dropped 0.9% to $77.230 per ounce, and platinum fell 1% to $2,057.10 per ounce.
Precious metals have seen pronounced volatility over the past two weeks, with sharp intraday swings, and both gold and silver remain well below their late-January highs.
Trading volumes were muted, with financial markets in China, South Korea, and the United States closed for the session.
Rate uncertainty keeps metals choppy
Gold and silver held onto part of last week’s advances, supported by bargain-hunting and a softer U.S. dollar. Rising geopolitical tensions between the U.S. and Iran also contributed to safe-haven demand.
Even so, both metals continue to trade beneath their late-January peaks and have experienced erratic price movements as investors grapple with uncertainty over the Federal Reserve’s next moves.
The late-January downturn in gold followed U.S. President Donald Trump’s nomination of Kevin Warsh to replace Jerome Powell as Fed Chair when Powell’s term ends in May.
Warsh has been perceived as less supportive of aggressive monetary easing, prompting concerns that U.S. financial conditions may remain relatively restrictive in the coming years.
“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 longer-term outlook for gold remains broadly constructive.
Focus turns to Fed minutes and inflation data
Investors are now awaiting further signals on the U.S. economic outlook, starting with the release of minutes from the Federal Reserve’s January meeting on Wednesday.
The minutes are expected to offer deeper insight into policymakers’ thinking on interest rates, particularly as markets weigh the possibility of a leadership transition at the central bank.
Later this week, December’s personal consumption expenditures (PCE) price index — the Fed’s preferred inflation measure — will be published and is likely to influence expectations for the longer-term rate outlook.
Additional U.S. economic releases scheduled for the week include trade data and industrial production figures.
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