Gold muted after nonfarm payrolls shock, inflation data awaited.
Gold prices were muted on Monday, reeling from sharp losses in the prior session as hotter-than-expected U.S. labor data fueled concerns over a hawkish Federal Reserve, with focus now turning to key inflation data due this week.
Bullion prices retreated sharply from record highs on Friday after much stronger than expected nonfarm payrolls data showed that the U.S. labor market was running strong despite rising interest rates.
A strong labor market is expected to factor into stickier inflation, which could result in the Federal Reserve keeping interest rates higher for longer – a scenario that bodes poorly for non-yielding assets.
