Gold Holds Gains Ahead of US Jobs Report

2 Jul 2024 , 11:23 AM

Gold prices crept up on Monday as a lower dollar spurred some short covering from investors, with attention shifting to U.S. jobs data due later this week, which could provide fresh clues about interest rate cuts by the Federal Reserve.

Spot gold was up 0.2% at $2,330.92 per ounce. Prices rose more than 4% in the second quarter. US gold futures rose 0.1% to $2,341.60.

The dollar index fell 0.2% against its rivals, making gold attractive to holders of other currencies.

This week’s focus will be on Fed Chair Jerome Powell’s remarks on Tuesday, followed by minutes from the Fed’s most recent policy meeting on Wednesday and U.S. nonfarm payrolls data due Friday.

Last week’s data revealed that U.S. prices were constant in May, while consumer spending increased marginally.

The market currently expects a 64% possibility that the Fed will decrease interest rates in September and again in December.

Lower interest rates lower the opportunity cost of keeping bullion.

Elsewhere, spot silver increased 0.8% to $29.35, platinum fell 0.6% to $987.05, while palladium jumped 1.3% to $985.

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