Global gold and silver prices fell sharply on Monday, tracking a broader retreat in safe-haven assets as market participants positioned themselves ahead of a critical macroeconomic data release.
The sell-off in precious metals reflects growing caution among traders who are awaiting clarity on the US inflation trajectory before committing to new directional bets.
The US Bureau of Labor Statistics is scheduled to publish the June consumer price index (CPI) report tomorrow.
This data point is widely viewed as the most significant near-term catalyst for Federal Reserve policy expectations.
A hotter-than-expected print could reinforce the case for higher-for-longer interest rates, which typically weighs on non-yielding assets like gold.
Conversely, a cooling inflation reading might revive hopes for earlier rate cuts, providing a potential tailwind for the metals sector.