July 6 (Reuters) – Gold was steady near a two-week high on Monday after a softer-than-expected U.S. jobs report last week tempered expectations of interest rate hikes from the Federal Reserve.
Spot gold was steady at $4,174.66 per ounce, as of 0252 GMT, after hitting its highest since June 22 earlier in the day. U.S. gold futures for August delivery climbed 1.5% to $4,186.70 per ounce.
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“Gold has regained some poise as markets dial back rate-hike expectations. While this provides relief on the yield front, the dollar’s strength continues to act as a ceiling,” said Tim Waterer, chief market analyst at KCM Trade.
The dollar gained 0.1%, making greenback-priced bullion more expensive for holders of other currencies.
Bullion logged a weekly gain of more than 2% last week, snapping a four-week losing streak, after softer-than-expected U.S. payrolls data eased worries about persistent inflation and prolonged high interest rates.
Traders now see about a 55% chance of a rate increase in September, down from more than 60% before the data, according to the CME FedWatch tool. FEDWATCH/
Lower interest rates tend to be favourable to gold, as it is a non-yielding asset.
Investors now await minutes of the Fed’s June 16-17 meeting, due out on Wednesday, for further clues on monetary policy.
Among other metals, spot silver fell 0.6% to $62.03 per ounce after hitting its highest since June 23 earlier. Platinum lost 0.1% to $1,636.60 per ounce and palladium was down 0.2% at $1,271.75 per ounce.
Reporting by Pablo Sinha and Swati Verma in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu
Our Standards: The Thomson Reuters Trust Principles.
Source: Original Article
