Spot Gold extended last Friday’s gains on Monday, as the metal reclaimed ground above $5,000/oz. on softer US Dollar ahead of delayed US jobs and inflation data prints, which may provide fresh clues over the Fed’s monetary policy trajectory.
“Any softness in the jobs data could help gold’s rebound efforts. We are not expecting a rate cut from the Fed until mid-year, unless the jobs data really starts to drop off a cliff,” KCM Chief Trade Analyst Tim Waterer was quoted as saying by Reuters.
San Francisco Federal Reserve President Mary Daly said last week that one or two additional interest rate cuts might be required to counteract weakness in the US labor market.
The US Dollar Index held at lows last seen on February 4th, being down 0.30% on the day. The greenback retreated as the Japanese Yen gained after Prime Minister Sanae Takaichi’s landslide victory in Sunday’s election.
A weaker dollar makes dollar-priced Gold more appealing to international investors holding other currencies.
Spot Gold was last up 1.19% on the day to trade at $5,023.81 per troy ounce.
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