Spot gold was 0.8% higher at $2,320.33 per ounce, and U.S. gold futures added 0.9% to $2,329.10
Gold prices gained on Monday, deriving support from a weak U.S. dollar after a lower-than-expected jobs report revived hopes that Fed will cut interest rates this year.
Spot gold was 0.8% higher at $2,320.33 per ounce by 09:52 GMT. U.S. gold futures added 0.9% to $2,329.10.
On Friday, we saw a decline in the new job creation in the U.S., a slowdown more than forecasted, and wage growth also slowed down, which creates some space for the Federal Reserve to start cutting rates in 2024, according to Ricardo Evangelista, senior analyst at ActivTrades.
The U.S. dollar slid to its lowest level in nearly a month after the employment report revealed U.S. job growth slowed more than anticipated in April and the rise in annual wages declined below 4% for the first time in around three years.
The data boosted bets of a September rate cut to 71% on Monday, according to the CME’s FedWatch Tool. Lower interest rates reduce the opportunity cost of holding bullion and weigh on the U.S. currency, in which gold is priced.
As several Federal Reserve officials are scheduled to deliver public speeches this week, gold traders will eagerly listen for further insights into the central bank’s monetary policy trajectory, Evangelista said, adding that Middle East tensions are also lending support.
On a technical front, the first short-term barrier the gold bulls face is likely the $2,350/365 near-term resistance zone, according to Kelvin Wong, a senior market analyst for Asia Pacific at OANDA.
He added: A clearance above it sees the next immediate resistance coming in at $2,420 (current all-time high area) and $2,450 in the first step.
