Gold prices pause record-breaking surge in early Monday trade

Gold prices paused their record-breaking surge on Monday, driven by a cooling US labour market and Federal Reserve comments, as per a Reuters report on Monday.

Traders awaited US inflation data for hints on rate cut timing.

Spot gold remained steady at $2,177.24 per ounce, while US gold futures dipped slightly to $2,183.90.

Last week, gold hit a record high of $2,194.99 amid signs of a weakening US labour market. Speculators increased net-long exposure at the fastest pace in 3.5 years.

With the Fed in a blackout period, the focus shifts to Tuesday’s consumer price inflation data, a key driver for gold prices.

A lower CPI print could support the case for an early rate cut, boosting gold prices. Traders are currently pricing in three to four rate cuts, with a 75 per cent chance of the first in June.

Lower rates enhance the attractiveness of non-yielding assets like gold.

Meanwhile, spot platinum rose slightly to $913.16 per ounce, palladium held steady at $1,019.54, and silver remained stable at $24.30.