Gold gains on dollar weakness, US jobs data awaited
Gold firmed on Monday as the dollar hovered near its lowest level in more than three years, while the market's focus shifted to a slew of U.S. jobs data due later this week that could influence the Federal Reserve's rate cut trajectory.
Spot gold was up 0.4% at $3,287.29 per ounce as of 0959 GMT, after hitting its lowest since May 29 earlier in the session. Bullion has risen 5.3% so far this quarter.
U.S. gold futures gained 0.4% at $3,298.80.
The dollar index hovered near its lowest level since March 2022. A weaker dollar makes greenback-priced bullion less expensive for holders of other currencies.
"I see two factors which are interlinked supporting gold. A weaker U.S. dollar and the ongoing pressure of President (Donald) Trump on the U.S. Federal Reserve to cut interest rates," said Giovanni Staunovo, an analyst at UBS.
Trump said on Friday he would not appoint anyone to head the Federal Reserve who would not support lowering interest rates.
On the U.S. data front, investors awaited the ADP employment report due on Wednesday, and non-farm payrolls report on Thursday, which could provide insights into the Fed's future path for interest rate cuts.
The focus remains if the data suggests a further slowdown in economic activity, which will allow the U.S. central bank to cut interest rates, Staunovo said.
Investors are anticipating 66 basis points of Fed rate cuts by the end of this year, starting in September.
Gold tends to gain appeal in a low-interest rate environment, as it offers no yield.
On the trade front, Canada scrapped its digital services tax targeting U.S. technology firms late on Sunday, just hours before it was due to take effect, in a bid to advance stalled trade negotiations with the United States.
Spot silver rose 0.2% to $36.05 per ounce, platinum firmed 1.6% to $1,361.0, while palladium was up 2.3% at $1,160.09.
(Reporting by Anushree Mukherjee in Bengaluru; additional reporting by Ishaan Arora; Editing by Mrigank Dhaniwala Editing by Bernadette Baum)
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