Gold Prices Slip as Traders Book Profits Amid Holiday Closures

LONDON – Gold prices slipped on Monday, pressured by thin trading volumes as U.S. and China markets remained closed for public holidays. Spot gold fell 0.9 per cent to $4,997.59 per ounce by 0726 GMT, after dropping more than 1 per cent earlier. U.S. gold futures for April delivery declined 0.6 per cent to $5,017.20.

Analysts said profit-taking after Friday’s 2.5 per cent surge, driven by U.S. consumer price inflation (CPI) data, contributed to the pullback. Tim Waterer, chief analyst at KCM, noted that “gold has given back some of Friday’s post-CPI gains due to thinner trading conditions and a lack of fresh upside catalysts.”

Gold Prices Slip

The U.S. CPI rose 0.2 per cent in January, slightly below expectations, fueling speculation of Federal Reserve rate cuts later this year. Market participants anticipate 75 basis points of cuts in 2026, with the first expected in July.

Non-yielding bullion typically benefits from lower interest rates, and analysts say a weaker U.S. dollar could push gold towards $6,000 by year-end. Meanwhile, silver fell 0.8 per cent to $76.82 per ounce, platinum slipped 0.7 per cent to $2,048.15, while palladium held steady at $1,685.64.

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