Gold prices held steady near a two-week high on Monday after a weaker-than-expected U.S. jobs report released last week slightly reduced expectations that the Federal Reserve will raise interest rates again this year.
Spot gold was little changed at $4,175.02 per ounce as of 00:28 GMT, following weekly gains of more than 2% on Friday, marking its first weekly advance after four consecutive weeks of losses.
U.S. gold futures for August delivery rose 1.5% to $4,186.80 per ounce.
Data released on Thursday showed a sharp slowdown in U.S. job growth during June, while employment figures for the previous two months were revised lower. The weaker labor market data prompted financial markets to reduce expectations for a near-term interest rate increase by the Federal Reserve.
According to the CME FedWatch Tool, traders now see the probability of a rate hike in September at around 55%, down from more than 60% before the employment data were released.
Gold, which does not offer a yield, typically benefits from lower interest rates. Investors will later this week focus on the minutes of the Federal Reserve’s June 16–17 policy meeting, the first chaired by Federal Reserve Chair Kevin Warsh.
Among other precious metals, spot silver extended its gains for a fifth consecutive session, rising 0.1% to $62.4773 per ounce after earlier reaching its highest level since June 23.
Spot platinum gained 0.4% to $1,645.05 per ounce, while palladium edged up 0.1% to $1,275.18 per ounce. Both metals are on track to post gains for a fourth straight trading session.
Reuters
