Gold prices fell below key levels in Asian trade on Monday, while silver fell sharply amid continued uncertainty over U.S. interest rates, especially following mixed consumer inflation data.
Metal markets remained volatile after logging wild swings in the past two weeks, with gold and silver also remaining well below late-January peaks.
Spot gold fell 1.2% to $4,982.10/oz, while gold futures for April fell 0.9% to $5,001.76/oz by 00:09 ET (05:09 GMT).
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Spot silver was the biggest decliner in precious metals, tumbling nearly 3% to $75.4505/oz, while spot platinum fell 1% to $2,047.25/oz.
Trading volumes were thin with Chinese, South Korean, and U.S. markets closed for the day.
The dollar steadied in Asian trade as markets parsed the outlook for U.S. interest rates following mixed consumer price index inflation data for January, released on Friday.
The print showed a mild decline in headline CPI, while core CPI was in line with expectations.
Precious metals see volatile trade amid rate uncertainty Gold and silver were sitting on some gains from the prior week, as a mix of dip-buying and weakness in the dollar supported metal prices. Heightened tensions between the U.S. and Iran also spurred some haven buying.
But precious metals still traded well below their late-January peaks, and logged a series of volatile swings in recent weeks as markets remained broadly uncertain over the outlook for U.S. interest rates.
Gold’s late-January losses were initially triggered by U.S. President Donald Trump nominating Kevin Warsh as the next Fed Chair after Jerome Powell’s term expires in May.
Warsh was viewed as a less dovish pick, sparking concerns that U.S. monetary conditions will not loosen substantially in the coming years.
"The market’s attention is gradually shifting to the potential impact of tariffs, which has yet to fully emerge in economic and inflation data, and doubts remain around future Fed credibility. Such a backdrop will intensify investors’ appetite for real assets like gold," ANZ analysts said in a note, adding that their long-term view on gold remained largely positive.
US Fed minutes, PCE data in focus Focus this week is squarely on more cues on the U.S. economy, with the minutes of the Federal Reserve’s January meeting due on Wednesday.
The minutes are expected to provide more insight into the central bank’s plans for interest rates, especially amid investor angst over a looming change in Fed leadership.
PCE price index data for December is also due later this week. The print is the Fed’s preferred inflation gauge, and is likely to factor into the central bank’s long-term outlook on rates.
U.S. trade and industrial production data is also due this week.
