Gold prices were listless on Monday, as cautious investors awaited a key US inflation data due this week that could influence the Federal Reserve’s monetary policy stance.
Spot gold was unchanged at $2,016.74 per ounce. US gold futures were flat at $2,025.60.
Any signs of inflation being subdued would hinder the greenback due to lower interest rate expectations from the Fed, which could see gold trend higher, said Tim Waterer, chief market analyst at KCM Trade.
Bullion prices fell more than 2 percent on Friday after stronger-than-expected US payrolls data tempered expectations of interest rate cuts from the Fed.
Traders also keep a tab on the developments surrounding the US banking sector and US debt ceiling.
US Treasury Secretary Janet Yellen on Sunday issued a stark warning that a failure by Congress to act on the debt ceiling could trigger a “constitutional crisis”.
Gold would be among the “prime beneficiaries” if there are further signs of weakness in the US economy, if the stars align for gold, prices could move to $2,100 sooner rather than later, Waterer said.
Economic uncertainty and lower rates attract demand for zero-yielding bullion.
On the physical front, China held 66.76 million fine troy ounces of gold at the end of April, up from 66.50 million ounces at end-March.
Spot silver fell 0.2 percent at $25.59 per ounce.
Platinum was steady at $1,059.32, while palladium gained 0.8 percent to $1,502.75.
“Platinum is regaining investors’ attention as fundamentals improve,” ANZ wrote in a note.
“South African mining challenges weigh on supply recovery this year, while demand is getting support from gold as well as substitution away from palladium. – Reuters “
