Three 1kg gold bullion bars worth over 155,00 GBP lay on the counter in a gold dealers in Birmingham's jewelry quarter on December 13, 2023 in Birmingham, England. Gold prices have increased since the Ukraine War but have soared to record highs since the start of the Hamas-Israel war. Other factors are the weakening US dollar and expected rate cuts from the Federal Reserve.
Gold prices dipped on Monday as the dollar strengthened, while investors awaited key U.S. jobs data to firm their bets on the size of Federal Reserve's interest rate cut expected this month.
Spot gold was down 0.3% at $2,494.76 per ounce, as of 0330 GMT. U.S. gold futures held steady at $2,527.20.
The dollar hit a near two-week peak, making greenback-priced bullion less appealing to other currency holders.
The Fed is expected to kick off a rate-cutting cycle at its policy meeting on Sept. 17-18. Traders currently see a 69% chance of a 25-basis-point cut and a 31% chance of a 50 bps cut, according to the CME FedWatch tool.
"The lead-up to the U.S. non-farm payrolls may put gold prices in their near-term range to start the week. Investors look towards a series of economic data to help resolve the debate between a 25 bp and a 50 bp cut for the upcoming Fed meeting," IG market strategist Yeap Jun Rong said.
Subscribe our newsletter to stay updated
Thank you for subscribing!
Subscribe our newsletter to stay updated
Thank you for subscribing!
