Gold Drops Amid Economic Data Anticipation

Gold prices experienced a significant decline, dropping more than 1% as the market awaits crucial economic indicators from the U.S. scheduled for release later this week. This data may shed light on the Federal Reserve's upcoming interest rate strategy, with nonfarm payroll figures and Consumer Price Index (CPI) results drawing particular attention.

Spot gold declined to $5,014.19 per ounce by late morning, corroborated by a 0.8% dip in U.S. gold futures for April delivery, reaching $5,037.20 per ounce. Market expert David Meger remarked on this light pullback, linking it to anticipation over key economic data and highlighting the ongoing weakness of the U.S. dollar as a supportive factor for gold prices.

Economic sentiment suggests the potential for two 25-basis-point rate cuts this year, fostering expectations of continued support for gold. Investors, particularly in India, are observantly pivoting towards gold-driven financial products despite a downside jot. Meanwhile, silver, platinum, and palladium also recorded price decreases, impacting broader metals trading.