Gold holds steady gains as markets await US jobs data for Fed rate clues

Tehran (ISNA) – Spot gold rose 0.2% to $4,062.41 per ounce, while U.S. gold futures climbed 0.7% to $4,117.50 per ounce, building on mild gains from the previous session.

Key U.S. economic data scheduled for release this week includes job openings data due later Tuesday, the ADP employment report on Wednesday, and the July nonfarm payrolls report on Friday.

“Gold is currently in a consolidation phase,” said Ajay Kedia, director at Mumbai-based Kedia Commodities. “If we see weakness in the U.S. labor market, it could put downward pressure on the dollar, thereby supporting the precious metal.”

Meanwhile, ongoing U.S. and Israeli military operations against Iran have driven up energy costs and stoked global inflation concerns, potentially forcing central banks to maintain or raise interest rates to curb price pressures. While gold is traditionally viewed as a hedge against inflation, higher interest rates raise the opportunity cost of holding non-yielding bullion.

Following the Federal Reserve’s decision to hold key interest rates steady at its latest policy meeting, markets are pricing in a 65% probability of a rate hike in September. Kedia noted that if expectations for a September hike diminish, gold prices could see further support.

New York Federal Reserve President John Williams stated he remains optimistic that inflationary pressures will gradually ease, but warned that the central bank would not hesitate to raise rates if progress stalls.

In a market note, Citigroup said it expects gold prices to remain flat or drop slightly next month before rising to $4,500 per ounce in the fourth quarter of this year and reaching $5,000 per ounce by the first half of next year, Reuters reported.

Among other precious metals, spot silver gained 1.2% to $58.89 per ounce, platinum advanced 0.9% to $1,641.96 per ounce, and palladium rose 0.9% to $1,275.83 per ounce.