The gold market is focused on U.S. inflation data, with PPI and CPI as the focal points

Despite the weakness of the dollar, gold prices still fell as investors awaited U.S. inflation data for clues on Federal Reserve interest rate decisions. Naeem Aslam of Zaye Capital Markets stated that gold prices remained above the $4,400 level, indicating that defensive demand was sufficient to offset the pressures from a strong labor market.

The market is balancing the strong economic data supporting interest rate hikes with the safe-haven demand brought about by geopolitical uncertainty. The focus is shifting to the U.S. PPI and CPI data to be released later this week.