Gold Drifts Lower

Gold slipped below $5,030 per ounce on Monday after rising more than 2% in the previous session on weaker-than-expected US CPI data. The soft inflation print reinforced expectations for more Federal Reserve rate cuts, with markets now pricing in slightly more than two reductions this year. Investors are awaiting the release of FOMC meeting minutes, the US GDP advance estimate, and PCE inflation data for further clues on the timing of the next rate cut. On the geopolitical front, traders are monitoring nuclear talks between the US and Iran, as well as US-led negotiations aimed at ending the war in Ukraine, both scheduled to resume on Tuesday. Developments in these areas could influence risk sentiment and safe-haven demand. Despite recent volatility, the precious metal remained supported by ongoing geopolitical uncertainty, strong central bank buying, and investor flight from sovereign bonds and currencies

Gold rose toward $5,030 per ounce on Friday, extending its rebound and paring weekly losses after Thursday’s more than 3% slide, as softer-than-expected US inflation eased pressure on Treasury yields and weighed on the dollar. The prior drop came amid a broad cross-asset selloff that forced investors to liquidate precious metals to raise cash, with simultaneous declines in equities and cryptocurrencies underscoring a wider risk-off move. Data showed annual inflation slowed to 2.4% in January, below forecasts, while core inflation eased to 2.5%, reinforcing dovish arguments at the Federal Reserve after strong jobs data had pushed rate-cut expectations toward July. Yields edged lower and the dollar weakened following the release, offering near-term support to bullion. Despite recent volatility, continued central bank buying, geopolitical tensions and persistent concerns over currency debasement and rising sovereign debt burdens continue to underpin structural demand.

Gold rose to around $4,960 per ounce on Friday after falling more than 3% in the previous session, as markets navigated elevated volatility. Thursday’s drop occurred during a broad market selloff that led investors to liquidate precious metals to raise cash. Although no single catalyst was identified, parallel declines in equities and cryptocurrencies point to broader risk aversion, possibly reinforced by automated trading. Meanwhile, investors are focused on US inflation data due later today, which could shape expectations for the Federal Reserve’s next policy move. Stronger-than-expected January jobs data released earlier this week have led markets to price in a first rate cut in July rather than June. Nevertheless, concerns about currency debasement, ongoing central bank purchases, and geopolitical tensions continue to provide underlying support for the metal. Bullion is still heading for a modest weekly loss.