Asian gold prices hold position after a brief surge to a seven-week high, as traders await key US inflation data that could influence Federal Reserve’s upcoming interest rate decision amid geopolitical tensions and market volatility.
Asian gold was broadly unchanged on Monday after briefly touching a seven-week high in the previous session, as traders awaited fresh US inflation data for clearer guidance on the Federal Reserve’s next move. According to the VietnamPlus report, spot gold was little changed at $4,346.85 an ounce at 1:37 pm Vietnam time, while December futures rose 0.2% to $4,406.80. The metal had climbed on Thursday to its highest level since June 17 after weaker-than-expected US employment figures sharpened expectations that borrowing costs could stay lower for longer.
The labour market data showed US payrolls fell unexpectedly in July and prior months were revised down sharply, prompting traders to scale back bets on a Fed rate increase at the September 15-16 meeting. A market analyst quoted by KCM Trade said the softer jobs figures had eased concern about tighter monetary policy and helped underpin bullion, with support likely to hold above $4,300 in the near term. Investors are now focused on US consumer price data due on Tuesday and producer prices on Wednesday, with cooler readings likely to reinforce the case for the Fed to keep rates unchanged.
Broader market conditions are also lending support, though analysts warned that geopolitical tension remains a key source of volatility. Any fresh escalation in the Middle East that pushes oil prices higher could quickly weigh on gold, which often reacts to shifts in inflation and risk sentiment. Elsewhere in precious metals, spot silver rose 0.9% to $64.09 an ounce and platinum gained 0.6% to $1,754.65. In Vietnam, Saigon Jewellery quoted SJC gold at 141.1 million to 144.1 million dong per tael.
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