Gold prices dipped on Monday after stronger-than-expected U.S. employment data weakened expectations of multiple interest rate cuts by the Federal Reserve this year.
August gold futures fell 0.35%, or $10.90, to $3,335.70 per ounce. However, spot gold edged higher, gaining 0.15%, or $4.78, to trade at $3,315.20 per ounce as of 8:57 a.m. Mecca time.
The shift in sentiment followed the release of the U.S. non-farm payrolls report, which showed the economy added more jobs in May than economists had anticipated. As a result, traders have scaled back their forecasts for rate cuts, now expecting just one in October instead of two earlier projected, according to Reuters.
The U.S. dollar index, which tracks the greenback against a basket of six major currencies, slipped 0.2% to 99, after briefly touching a session low of 98.95.
In other precious metals, July silver futures rose 0.25% to $36.24 per ounce. Spot platinum gained 2.3% to $1,195.35, while spot palladium slipped 0.15% to $1,049.66 per ounce.
Investors now turn their attention to the upcoming release of the U.S. Consumer Price Index (CPI) on June 11, which is expected to offer further clues on the Federal Reserve’s monetary policy trajectory.
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