Gold slips lower, from a seven-week high early Monday, on profit taking after last week’s rally and as investors awaited further direction from upcoming U.S. inflation data.
The yellow metal surged last week after weaker-than-expected labor market data curbed expectations of multiple Federal Reserve interest rate hikes this year to combat inflation from higher oil prices and the Iran war’s shutdown of the Strait of Hormuz. The Fed closely watches both inflation and labor market data when setting monetary policy. The consumer price index report for July comes out Wednesday and the producer price index on Thursday. Higher interest rates are considered bearish for gold, while keeping them unchanged would be bullish.
December gold futures surged 7.1% last week to settle at $4,399.70 an ounce on Comex, after the front-month contract increased 2.3% Friday. Bullion rose 1.7% in July, its first monthly increase since February, after sliding 12% in June and dropping 0.8% in May. It decreased 7% in the first half of 2026 after rallying 64% last year. The December contract is currently down $14.20 (-0.32%) an ounce to $4385.50 and the DG spot price is $4323.20.
UBS analysts forecast Friday that the yellow metal will rise toward $5,000 again in the first half of 2027. Recent support has come from Chinese institutional buying and inflows into exchange-traded funds, the report stated. Support into next year is likely to come from revived investment demand as inflation moderates as well as on a softer dollar and central bank buying. It said near-term risks remain from high inflation spurred by oil prices and possible hawkish Fed actions.
The U.S. lost 23,000 jobs last month, missing economists’ expectations of a 95,000-job gain, according to data released Friday by the Labor Department. In addition to the July losses, the agency sharply revised lower gains posted in June and July.
The Fed last month held interest rates steady at 3.5% to 3.75% but dissenters signaled growing support for a rate hike in 2026. About 54% of investors tracked by the CME FedWatch Tool are betting on rates remaining unchanged at the Fed’s next policy meeting in September, with the rest anticipating that rates will increase by 25 basis points. A week ago, 67% were betting on a rate hike. The Fed has kept interest rates unchanged this year after three previous rate cuts.
Front-month silver futures climbed 9.9% last week to settle at $63.50 an ounce on Comex after the September contract rallied 3.1% Friday. The most-active contract touched a record above $115 in January. Silver slid 3.6% in July after declining 21% in June and gaining 2.5% in May. It lost 15% in the first half of 2026 after rising 141% last year. The September contract is currently up up $0.546 (+0.86%)s an ounce to $64.045 and the DG spot price is $53.70.
Spot palladium rose 7.5% last week to $1,385.50 an ounce after advancing 0.9% Friday. Palladium added 5.8% last month after dropping 11% in June and losing 12% in May. It retreated 25% in the first half of 2026 after rising 74% last year. Currently, the DG spot price is down $21.30 an ounce to $1360.00.
Spot platinum rose 5.5% last week to $1,753.90 an ounce after increasing 1.5% Friday. Platinum gained 6.6% last month after tumbling 19% in June and dropping 3.2% in May. Platinum slid 23% in the first half of 2026 after increasing 122% in 2025. The DG spot price is currently down $25.90 an ounce to $1729.70.
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