Gold prices slip from two-week peak
Shafaq News
Gold prices retreated from two-week highs on Monday, pressured by a firmer U.S. dollar, though losses were limited as signs of a cooling U.S. labour market eased expectations of a Federal Reserve rate hike.
Spot gold was down 0.8% at $4,143.12 per ounce by 12:02 p.m ET (1602 GMT) after hitting its highest since June 22.
U.S. gold futures for August delivery climbed 0.7% to $4,155.50 per ounce.
"The US dollar index is a little higher today and that is a daily bearish element (for gold)," said Jim Wyckoff, a market analyst at American Gold Exchange.
The dollar gained 0.2%, making the yellow metal more expensive for overseas buyers.
Data last week showed a marked slowdown in U.S. job growth in June alongside downward revisions to payrolls for the prior two months, leading markets to scale back expectations of a near-term Fed rate hike.
While gold is often seen as a hedge against inflation, higher interest rates tend to negatively impact the non-yielding bullion.
Investors now await the minutes from the Fed's last meeting, due on Wednesday.
"Traders are going to be examining those minutes to see if they can glean any other clues for the trajectory of U.S. monetary policy and any surprises that come out of those minutes would certainly be markets moving," Wyckoff said.
Market participants are now pricing in about a 57% chance of a rate hike in September, according to the CME FedWatch Tool.
J.P Morgan said in a note on Friday that demand for gold from key sectors would not be as strong as it had expected, limiting the rise in gold prices this year to $4,300/oz in the third quarter and $4,500/oz in the fourth quarter.
Among other metals, spot silver dropped 1.2% to $61.63 per ounce after hitting its highest since June 23 earlier.
Platinum fell 0.7% to $1,626.10, and palladium slid 0.8% to $1,264.16 per ounce.
(Reuters)
Only the headline is edited by Shafaq News Agency.
