Gold Prices Fall as Investors Await U.S. CPI and Tariff Clarity
Gold prices declined in Asian trading on Monday as markets awaited key U.S. inflation data and sought clarity from Washington on tariffs for bullion bars.
By 01:51 ET (05:51 GMT), Spot Gold dropped 0.7% to $3,376.24 an ounce, while Gold Futures for December fell 1.5% to $3,438.22 per ounce.
Futures Retreat After Record Highs
Last week, gold futures surged above $3,530/oz, hitting a record high after the U.S. Customs and Border Protection ruled that standard 1-kilogram and 100-ounce gold bars would be subject to an import tariff.
This ruling disrupted global bullion flows, with some Swiss refiners halting shipments to the U.S., according to Reuters. Industry groups warned that the policy could damage global gold trade, particularly from Switzerland, the world’s main refining hub.
The White House has promised an executive order to clarify the tariff policy, easing some tension in futures markets.
U.S. CPI Data in Focus
Investors are now focused on U.S. inflation figures to gauge the Federal Reserve’s policy path.
The July Consumer Price Index (CPI), due Tuesday, is expected to rise 0.2% from June. Later in the week, the Producer Price Index (PPI) will also be released.
Traders currently price in an 89% chance of a September rate cut, especially after weak labor market data earlier this month.
Meanwhile, the U.S.-China tariff truce, which has prevented further escalation of duties, is set to expire on August 12. While optimism for an extension remains, uncertainty still surrounds the talks.
Other Metals Mixed
In other precious metals, Platinum Futures fell 0.6% to $1,331.95/oz, while Silver Futures dropped 0.7% to $38.275/oz.
Industrial metals were mixed. London Metal Exchange Copper Futures rose 0.3% to $9,789.25 a ton, while U.S. Copper Futures held steady at $4.47 a pound.
