Gold prices held above $4,340 per ounce on Monday, hovering near a two-month high, as markets scaled back expectations of a Federal Reserve rate hike this year. Signs of a softening labor market led rate futures to tilt more toward a pause than an increase at the Fed’s September policy meeting. Nonfarm payrolls unexpectedly fell in July and wage growth slowed, though a lower unemployment rate suggested a sharp contraction in the labor force.
Declining energy prices further eased concerns about higher interest rates among bullion investors. The reduced intensity of US strikes on Iran aligned with Washington’s signals that a deal with Tehran may be achievable, helping keep energy costs below recent peaks.
Meanwhile, Chinese investors continued to increase long positions in gold-backed assets as a hedge against volatility in technology stocks and in response to recent signs of resilience in the physical gold market. Central banks, particularly in Asia, also remained active buyers of gold.
