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.
“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.
Data on Thursday showed U.S. job growth slowed sharply in June and payroll gains for the prior two months were revised lower, pointing to a cooling labour market and prompting financial markets to dial back expectations for a near-term Fed rate hike.
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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.
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.
J.P. Morgan said demand for gold from key sectors would not be as strong as it had expected, limiting the rise in bullion prices this year to $4,300 in the third quarter and $4,500 in the fourth quarter.
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.