Gold Prices Retreat as Strong Jobs Data Tempers Rate Cut Bets; Inflation Data, Fed Outlook in Focus
• Gold prices fell in Asian trade on Monday, extending losses as markets scaled back bets on early Fed rate cuts due to strong U.S. jobs data.
• Markets now focused on key December CPI inflation data coming this Thursday, which could provide further clues on Fed policy outlook.
• Traders pulled back expectations for a Fed rate cut in March, now seeing only a 63% chance versus over 73% last week.
• Higher for longer interest rates seen exerting more pressure on gold prices in the near-term.
• Copper prices rose slightly after sharp losses last week, with more Chinese economic data on tap that will drive copper demand outlook.