Gold prices held steady in Asian trade on Monday after a sharp rise in the previous session, buoyed by expectations for Federal Reserve interest rate cuts following weak U.S. labor data and heightened trade tensions under President Trump.
Spot Gold was largely unchanged at $3,360.26 an ounce, while Gold Futures for December gained 0.2% to $3,412.70/oz by 01:03 ET (05:03 GMT).
Gold prices rallied after soft US jobs data Gold prices jumped over 2% on Friday, recouping most of their earlier losses from the week. The rally helped the metal post a weekly gain after two straight weeks of declines.
Data on Friday showed that U.S. nonfarm payrolls rose by just 73,000 in July, well below forecasts, accompanied by downward revisions to May and June figures.
The unemployment rate ticked up to 4.2%, reinforcing fears of a slowing U.S. economy.
This increased the probability of a September rate cut, now priced at around 90% by markets.
Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making bullion more attractive to investors.
Lower Treasury yields and a weaker dollar made gold more attractive, driving a nearly 2% rise in prices.
The US Dollar Index traded 0.4% lower after dropping 0.8% on Friday.
Trump tariff jitters support gold’s haven appeal Investors have also been seeking safe-haven assets as President Trump pressed ahead with sweeping tariffs on imports from countries including Canada, Brazil, India, and Taiwan.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. These tariffs have raised inflation concerns and could potentially disrupt global trade flows, further supporting bullion demand.
Gold’s appeal remains strong in a low-yield, uncertain policy environment.
Metal markets edge up on weak dollar; US copper under pressure Platinum Futures ticked up 0.2% to $1,318.65/oz, while Silver Futures rose 0.6% to $37.150 per ounce.
Benchmark Copper Futures on the London Metal Exchange gained 0.3% to $9,672.75 a ton, while U.S. Copper Futures fell 0.7% to $4.42 a pound.
US copper prices plunged 20% last week after President Trump excluded refined metal from his planned 50% import tariff on the metal.
“The collapse of an arbitrage trade has left the US with a huge buildup of copper stockpiles,” ING analysts said in a note.
“Copper inventories at Comex warehouses are at their highest in 21 years. That stockpile might now be re-exported.”
“This will be bearish for LME prices with more copper showing up in LME warehouses,” they added.
