Gold eases

- Advertisement -

Gold prices edged lower in rangebound trading on Monday as the dollar firmed after a strong US payrolls report, overshadowing support from prospects that the Federal Reserve would pause its rate hikes this month.

Spot gold was down 0.2 percent at $1,944.69 per ounce, trading in a $6 range. Prices were hovering near their lowest levels since May 30.

US gold futures fell 0.4 percent to $1,961.30.

- Advertisement -

Gold prices slipped more than 1 percent on Friday after data showed US nonfarm payrolls rose by 339,000 jobs last month, exceeding a 190,000 forecast by economists polled by Reuters. But the unemployment rate surged to a seven-month high of 3.7 percent from a 53-year low of 3.4 percent in April.

The higher unemployment reading prompted markets to price in a 79.3 percent chance of the Fed leaving interest rates unchanged at its June 13-14 meeting, according to the CME FedWatch Tool.

“Money markets continue to favor a pause (as did comments from Fed vice chair nominee Philip Jefferson), so it may limit the downside for gold even if it has lost some safe-haven flows from debt-ceiling concerns… The question now is whether (gold) will break support at $1,934 to bring $1,900 into focus,” City Index senior market analyst Matt Simpson said.

Non-interest-bearing bullion tends to become less attractive in a high interest rate environment.

The US House of Representatives last week passed a bill to suspend the $31.4 trillion debt ceiling, and averted a first-ever default.

The dollar index rose 0.1 percent , making greenback-priced bullion less affordable for overseas buyers.

Asian shares extended a global rally on optimism that the Fed would pause its rate hikes this month, while oil prices jumped.

Spot silver inched down 0.2 percent to $23.53 per ounce, platinum rose 0.2 percent to $1,005.00 per ounce, while palladium shed 0.6 percent to $1,412.46.– Reuters

Author

- Advertisement -

Share post: