Gold retreats

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Gold prices took a breather from a record-breaking rally on Monday, which was fueled by a cooling US labor market and remarks from the Federal Reserve, as traders awaited an inflation report for fresh clues on the timing of rate cuts.

Spot gold was steady at $2,178.44 per ounce. US gold futures were flat at $2,185.30.

Gold set a record peak of $2,194.99 for the fourth straight day on Friday after data signaled a cooling US labor market.

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“With large speculators having increased net-long exposure at their fastest weekly pace in 3.5 years last Tuesday, gold is clearly in demand and not a market to short for any length of time whilst traders expect Fed cuts,” City Index senior analyst Matt Simpson said.

COMEX gold speculators raised their net long positions by 63,018 contracts to 131,060 in the week ended March 5, data showed on Friday.

Prices will simply consolidate at lofty levels heading into consumer price inflation (CPI) data for February due on Tuesday, as that is likely the single biggest driver of gold prices this week, given the Fed are now in a blackout period, Simpson said. – Reuters

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