Mumbai, 10 Jun (Commoditiescontrol): Gold prices steadied on Monday after falling below the crucial $2,300 mark in the previous session due to stronger-than-expected U.S. jobs data, which dampened hopes for an early interest rate cut this year. Spot gold inched up 0.2% to $2,396.69 per ounce, while U.S. gold futures dipped 0.5% to $2,313.60.
The dollar's 0.2% rise against its rivals made gold more expensive for other currency holders, while the benchmark U.S. 10-year Treasury yields also edged up. Gold had fallen over 3% on Friday following robust U.S. jobs data and China's pause on gold purchases.
China's central bank halted its gold purchases in May, ending 18 months of consecutive buying, as spot gold prices hit a record high, according to official data released on Friday. The U.S. economy added significantly more jobs than expected in May, with annual wage growth reaccelerating, showcasing the labor market's resilience. This reduced the likelihood of the Federal Reserve initiating rate cuts in September.
The jobs data prompted traders to adjust their expectations for rate cuts. The probability of a rate cut in September is now about 50%, down from approximately 70% late last Thursday. Lower interest rates decrease the opportunity cost of holding non-yielding bullion.
The Federal Reserve is not expected to make changes at its policy meeting this week, but market focus will be on comments from Fed Chair Jerome Powell and updates to economic projections from policymakers. U.S. inflation data, due on Wednesday, is also highly anticipated.
In other precious metals, spot silver rose 1% to $29.48 per ounce, platinum increased about 1% to $973.20, and palladium gained 1.1% to $922.19. Meanwhile, Vietnam's central bank announced it has "enough resources and determination" to stabilize the domestic gold market amid a sharp rise in local gold prices this year.
(By Commoditiescontrol Bureau: 09820130172)
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