FX.co ★ Gold Slips on Strong Dollar

Gold prices eased to around $4,180 an ounce on Monday after touching a one-week high earlier in the session, as a stronger US dollar pressured bullion and investors looked ahead to key inflation data that could shape the Federal Reserve’s interest-rate outlook.

The dollar hovered near an 18‑month high, supported by ongoing tensions in the Middle East and caution ahead of this week’s US consumer and producer price releases, as well as retail sales figures. Any upside surprises in these reports could bolster expectations for tighter monetary policy, driving Treasury yields and the dollar higher and exerting additional downward pressure on gold.

Markets have pared back expectations for a Fed rate hike this month, with futures pricing in less than a 20% chance of an increase, while assigning about an 85% probability of a move by December, according to CME’s FedWatch tool.

Investors will also be closely watching this week’s IMF–World Bank annual meetings for further guidance from global central bankers on the broader monetary policy outlook.