Gold futures prices dropped more than 1% in early Monday trading, reversing part of last week’s rally to record highs. The pullback follows the White House’s announcement that it will issue an executive order clarifying the US tariff policy on Swiss gold bar imports, easing concerns of disruption to global bullion trade. Risk appetite also improved after confirmation of a Friday summit in Alaska between Presidents Trump and Putin, fuelling hopes of a pause in the Russia-Ukraine conflict. Traders now turn to Tuesday’s US inflation data for July, expected to show a modest rise in consumer prices. Such an outcome is seen as consistent with expectations for a Federal Reserve rate cut in September. However, a stronger-than-forecast reading could prompt a reassessment of the Fed’s stance, strengthening the dollar and pressuring gold due to their inverse price relationship.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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