By Sherin Elizabeth Varghese
(Reuters) -Gold prices fell more than 1% on Monday as investors waited for clarity from the White House on potential country-specific tariffs on bullion bars, while focus shifted to U.S. inflation data for clues to the Federal Reserve’s rate path.
Spot gold was 1.1% lower at $3,362.21 per ounce by 0839 GMT, after hitting its highest since July 23 on Friday.
U.S. gold futures for December delivery fell 2.1% to $3,417.30, having hit a record high of $3,534.10 on Friday after reports that Washington had imposed tariffs on imports of 1-kg bullion bars.
The White House on Friday said it would issue an executive order clarifying its stance on the tariffs.
“Spot gold is tumbling, along with futures, as markets unwind the initial shock from U.S. tariffs potentially plunging bullion flows into chaos,” said Han Tan, chief market analyst at Nemo.Money.
Market attention is also focused on Tuesday’s U.S. consumer price data, with tariffs expected to push core inflation up 0.3%, lifting the annual rate to 3.0%, well above the Fed’s 2% target.
“Lower-than-expected CPI prints that bolster bets for Fed rate cuts by year-end may restore spot gold above the psychological $3400 level,” Tan said.
A recent softer-than-expected U.S. jobs report has seen markets price in a near 90% chance of a September rate cut and at least one more reduction by year-end. Lower rates typically benefit non-yielding gold.
U.S. Treasury Secretary Scott Bessent is seeking a successor to Fed Chair Jerome Powell, including a veteran consultant and a former regional Fed president, a source told Reuters. The search fuels policy uncertainty amid concerns over the Fed’s independence, after months of Trump pressuring Powell to cut rates.
A U.S. tariff deadline on China, due to expire on Tuesday, is expected to be extended again, while U.S. President Donald Trump and Russian leader Vladimir Putin are due to meet in Alaska on Friday to discuss ending the Ukraine war.
Spot silver fell 1.1% to $37.89 per ounce, platinum was down 1.3% to $1,314.73 and palladium gained 0.4% to $1,131.55.
(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Kirsten Donovan)
