Gold drops over 1% as thin trading, profit‑taking weigh

Gold prices dropped on Monday, pressured by thin trading volumes as U.S. and China markets remained shut due to local public holidays, while some traders booked profits after last session's 2.5% jump.

Spot gold fell 1.1% to $4,988.04 per ounce by 0359 GMT. U.S. gold futures for April delivery lost 0.8% to $5,006.60 per ounce.

"Gold has given back some of Friday's post-CPI gains today due to thinner trading conditions and a lack of fresh upside catalysts," said Tim Waterer, KCM chief analyst, and also pointed to profit-taking on the day.

U.S. markets are closed for the Presidents' Day holiday, while markets in China are closed for the Lunar New Year holiday.

The Consumer Price Index rose 0.2% in January after an unrevised 0.3% gain in December, the Labor Department's Bureau of Labor Statistics said on Friday. Economists polled by Reuters had forecast the CPI to increase by 0.3%.

Federal Reserve Bank of Chicago President Austan Goolsbee said on Friday that interest rates could go down, but noted that services inflation remained high.

Reuters