Spot gold continues to hit new highs, inflation data may curb bullish momentum.

During the Asian session on Monday, spot gold continued to hit a historic high, with the market betting on a more aggressive interest rate cut by the Federal Reserve as US employment data came in weaker than expected. In this context, the likelihood of a significant appreciation of the US dollar seems unlikely. Additionally, central banks around the world continue to be net buyers of gold at current price levels, which may continue to provide support for this non-yielding precious metal. However, considering that the latest US inflation data will be released later this week and gold is currently in overbought territory, bulls may pause their new bets. On the daily chart, the relative strength index is still well above 70, indicating signs of overbought conditions.