Spot gold fell 0.7% to $3,376.67 per ounce as of 0248 GMT, retreating from Friday’s peak—the highest since July 23.
US gold futures for December delivery dropped 1.5% to $3,439.70 an ounce.
In India, gold prices stood at ₹1.02 lakh for 10 grams of 24 karat gold, ₹93,750 for 22 karat, and ₹76,710 for 18 karat, according to Goodreturns data.
City Index senior analyst Matt Simpson said cooling geopolitical tensions over the Ukraine war, following the announcement of an August 15 meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska, weighed on bullion.
“A hot US inflation print could further strengthen the dollar and cap gains on gold, though support is likely to remain as investors look for discounts,” he added.
Market focus remains on the US consumer price index due Tuesday (August 12), with analysts expecting core inflation to rise 0.3% to an annual 3.0%, above the Fed’s 2% target.
Persistent trade concerns, especially around Trump’s August 12 deadline for a US-China deal, are also keeping investors cautious.
Rahul Kalantri, VP Commodities at Mehta Equities, said gold has immediate support at $3,360–$3,342 an ounce and resistance at $3,410–$3,425 an ounce. In the domestic market, support lies at around ₹1.01 lakh per 10 grams, with resistance at ₹1.02 lakh per 10 grams.
“While tensions have eased slightly, Fed rate cut expectations and trade uncertainty are limiting the downside,” he noted.
Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said that prices are likely to remain choppy as Trump’s tariff stance keeps uncertainty high.
Meanwhile, data from the U.S. Commodity Futures Trading Commission showed COMEX gold speculators increased net long positions by 18,965 contracts to 161,811 in the week to August 5, stressing lingering bullish sentiment despite Monday’s dip.
–With Reuters inputs
