Gold Slips as Traders Cash In; Eyes on U.S. Inflation Data

Gold prices retreated on Monday as traders locked in profits after recent record highs, with attention shifting to a key U.S. inflation report set for release later this week.

Spot gold was down 0.4% at $2,925.63 an ounce, as of 0204 GMT. Bullion scaled an all-time high of $2,954.69 on Thursday.

U.S. gold futures dipped 0.5% to $2,939.30.

"Gold has been unable to capitalise on the broader risk-averse theme of the market, with profit-taking moves offsetting any rise in safe-haven demand," said Tim Waterer, chief market analyst at KCM Trade.

"With trade uncertainties not looking like they are disappearing anytime soon, gold could still be eyeing off reaching new all-time highs again this week."

U.S. President Donald Trump said last week that he would announce fresh tariffs over the next month or sooner, adding lumber and forest products to previously announced plans to impose duties on imported cars, semiconductors, and pharmaceuticals.

This follows the already-imposed additional 10% levy on Chinese imports and a 25% tariff on steel and aluminium.

Traders are closely monitoring the U.S. Federal Reserve's interest rate trajectory for clues, as Trump's policies are seen as inflationary.

If inflationary pressures lead the Fed to keep interest rates high, gold's appeal as a non-yielding asset could diminish.

Markets will shift focus towards the Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation measure, due on Friday for more confirmation of the central bank's rate path.

On the geopolitical front, Trump reversed course on Friday and said Russia did in fact invade Ukraine, and that Kyiv would soon sign a minerals agreement with the United States as part of efforts to end the Ukraine war.

Spot silver was down 0.4% at $32.42 an ounce, platinum dropped 0.2% to $967.71, and palladium shed 0.3% to $965.97.