Gold prices decline as market awaits U.S. inflation data to guide interest rate outlook

Despite the weak US dollar, gold prices continue to decline as investors await US inflation data for more clues on the Federal Reserve's interest rate decisions. Naeem Aslam from Zaye Capital Markets stated that gold prices holding above the $4,400 area indicates that defensive demand remains sufficient to offset the pressure from a strong labor market. The market is balancing two forces: robust US economic data supporting interest rate hikes, and geopolitical uncertainty that continues to attract safe-haven demand. Attention now turns to the release of the US PPI and CPI data later this week.