On Monday, spot gold was steady at $4,174.66 per ounce, having reached its highest level since June 22 earlier in the day. U.S. gold futures for August delivery rose by 1.5% to $4,186.70 per ounce. The recent softer-than-expected U.S. jobs report has led to a decline in rate-hike expectations from the Federal Reserve, providing some support for gold prices.
Tim Waterer, chief market analyst at KCM Trade, noted that while the easing of rate-hike expectations offers relief, the strength of the dollar continues to limit gold's potential gains. The dollar increased by 0.1%, making gold more expensive for foreign investors.
Last week, gold recorded a gain of over 2%, breaking a four-week losing streak, as the labor market showed signs of cooling, with job growth in June slowing significantly and prior payroll figures being revised downward. This has led traders to adjust their expectations for a rate increase in September to about 55%, down from over 60%.
Lower interest rates generally benefit gold, as it does not yield interest. Investors are now looking forward to the release of the Fed's meeting minutes from June 16-17 for further insights into monetary policy. J.P.
Morgan has adjusted its forecast for gold prices, predicting a rise to $4,300 in the third quarter and $4,500 in the fourth quarter, citing weaker-than-expected demand from key sectors. In the broader metals market, spot silver fell 0.6% to $62.03 per ounce, while platinum and palladium also experienced slight declines