Gold stays near two-week high as US jobs data cools Fed rate-hike bets

Gold prices held near a two-week high on Monday after weaker-than-expected US jobs data reduced expectations that the Federal Reserve would raise interest rates soon.

Spot gold was steady at $4,174.66 per ounce as of 0252 GMT, after earlier touching its highest level since June 22. US gold futures for August delivery rose 1.5% to $4,186.70 per ounce.

Bullion gained more than 2% last week, ending a four-week losing streak, after the US payrolls report showed a cooling labour market. Data released on Thursday showed job growth slowed sharply in June, while payroll gains for the previous two months were revised lower.

The report led traders to reduce expectations of a near-term Fed rate increase. Markets now see around a 55% chance of a rate hike in September, down from more than 60% before the data, according to the CME FedWatch tool.

Lower interest rates usually support gold because bullion does not offer a yield.

Tim Waterer, chief market analyst at KCM Trade, said gold had recovered as markets scaled back rate-hike expectations, though a stronger dollar was still limiting gains.

The dollar rose 0.1%, making gold more expensive for buyers using other currencies.

Investors are now awaiting the minutes of the Federal Reserve’s June 16-17 meeting, due on Wednesday, for further signals on monetary policy.

J.P. Morgan said demand from key gold-consuming sectors may be weaker than previously expected. The bank expects gold to average $4,300 per ounce in the third quarter of 2026 and $4,500 per ounce in the fourth quarter.

Among other precious metals, spot silver fell 0.6% to $62.03 per ounce after earlier reaching its highest level since June 23. Platinum slipped 0.1% to $1,636.60 per ounce, while palladium was down 0.2% at $1,271.75 per ounce.