Gold futures climbed above $4,200 an ounce on Monday, extending last week's rally as weaker-than-expected US labor market data reinforced expectations that the Federal Reserve may adopt a less aggressive policy stance. June nonfarm payrolls increased by just 57,000'the slowest pace in four months'prompting markets to scale back the probability of a September rate hike from 65% to nearly 50'53%. The retreat in oil prices to pre-conflict levels has further eased inflation concerns, while softer Treasury yields continued to enhance gold's appeal as a non-yielding asset. Although the US dollar index edged up to around 100.8, the broader decline in rate-hike expectations kept bullion well supported. Investors will now closely scrutinize the release of the FOMC meeting minutes later this week for fresh insights into the Federal Reserve's policy trajectory and the outlook for precious metals.
Powered by Capital Market - Live News