The minor drop in the value of the dollar and the likelihood that the US Federal Reserve would stop raising interest rates helped the price of gold rise on Monday to a one-month high set in the previous session. this season.
At 0334 GMT, spot gold increased 0.3% to $1,945.40 an ounce after reaching a high of $1,952.79 on Friday. The price of US gold futures rose 0.2% to $1,971.70.
Due to little trading volume and the US vacation, gold is now trading below resistance at the $1,951 level, according to Tim Waterer, chief market analyst at KCM Trade.
The price of gold will probably depend on Treasury rates dropping to $1,950 or more this week.
Gold typically loses attractiveness as interest rates increase since it does not produce interest on its own.
According to figures released on Friday, the number of jobs in the United States increased in August, but the unemployment rate rose to 3.8% and pay growth slowed, raising worries. reasons in favor of this month’s interest rate reduction.
Traders currently predict a 93% likelihood that the Fed will maintain current interest rates during its September meeting, according to the CME’s FedWatch tool.
According to a former vice president of a central bank, the actual economy has not yet completely benefited from the US Fed’s interest rate increases, which started in March 2022.
The largest gold-backed exchange-traded fund, SPDR Gold Trust, reported that its holdings increased by 0.10% on Friday.
Spot silver increased by 0.4% to $24.27 per ounce, platinum increased by 0.1% to $961.51, and palladium increased by 0.5% to $1,224 $.28.
