Gold was flat as investors awaited for US inflation data on Tuesday.
Gold remained flat as central bank officials in the US and Europe signaled that further rate hikes are on the way, ahead of US inflation data to be released on Tuesday.
On the first trading day of the new week, gold was above $ 1,726 in the spot market.
After falling for a few months, Spot gold went back and forth between the $1700-1720 band in September and closed the week by rising for the first time in four weeks on Friday.
Economists predict that August inflation will slow down to 8.1 percent for the second month in a row. Nevertheless, Fed officials pointed out in their statements last week that a new rate hike of 75 basis points will be made at the meeting to be held in September. Fed Governor Christopher Waller also said on Friday that he prefers “a big rate hike.”
“Gold once again rebounded after gaining support at the $1700 level, but the Fed’s emphasis on aggressive tightening may push it hard,” said Ravindra Rao, Head of Commodities Research at Kotak Securities Ltd. “The uncertainties stemming from the concerns of the energy crisis in Europe and the effects of the energy crisis in Europe are being met with concerns about global monetary tightening, ETF exits, and Chinese consumer demand.”
