Gold rises for fourth session as US jobs data lifts Fed rate cut bets
Spot gold was up 0.1% at $3,375.89 per ounce as of 0239 GMT. U.S. gold futures also gained 0.1% to $3,430.40.
The dollar index hovered near a one-week low, making gold more affordable to holders of other currencies.
The yield on the benchmark 10-year Treasury note dropped to a one-month low. 'Short-term momentum has improved for the bullish side of the story…fundamental narrative supporting gold prices is that the Fed is still in the mode to actually cut rates in September,' OANDA senior market analyst Kelvin Wong said.
U.S. employment growth was softer than expected in July, while non-farm payroll figures for May and June were revised down by a massive 258,000 jobs, suggesting a deterioration in labor market conditions.
Traders now see a 92% chance of a September rate cut, per the CME FedWatch tool.
San Francisco Fed Bank President Mary Daly said on Monday that given mounting evidence that the U.S. job market is softening and that there is no sign of persistent tariff-driven inflation, the time is nearing for rate cuts.
Gold, traditionally considered a safe-haven asset during political and economic uncertainties, tends to thrive in a low-interest-rate environment.
On the trade front, President Donald Trump once again threatened on Monday to raise tariffs on Indian goods over its Russian oil purchases. New Delhi called his remarks 'unjustified' and vowed to protect its economic interests, deepening the trade rift between the two countries.
Still, gold faces some technical resistance. 'I still do not see traders pushing up aggressively above the $3,450 level. Unless we have a very clear catalyst for gold price to actually pick up this level' OANDA's Wong said.
Elsewhere, spot silver rose 0.1% to $37.44 per ounce, platinum gained 0.1% to $1,330.31 and palladium was up 0.2% to $1,204.25.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
24 minutes ago
- Business Recorder
India's Berger Paints misses quarterly profit view on higher expenses, one-time charge
Berger Paints India reported quarterly profit below analyst estimates on Tuesday, as higher expenses and a one-time charge related to a fire incident weighed. Consolidated net profit shrank 11% to 3.15 billion rupees (about $36 million) in the quarter ended June 30. Analysts, on average, had predicted a profit of 3.62 billion rupees, as per data compiled by LSEG. Berger took a one-time charge of 368.1 million rupees during the quarter. Key context Indian paintmakers have been grappling with soft retail demand. 'The early onset of monsoon played spoilsport this quarter,' CEO Abhijit Roy said in a statement. However, India's largest paintmaker Asian Paints said last month that it sees some 'green shoots' of demand recovery in the sector. It had resorted to discounts in the quarter to buy back customers, while it posted an in-line quarterly profit. Rivals, Akzo Nobel India and Kansai Nerolac posted lower quarterly profit.
Business Recorder
an hour ago
- Business Recorder
TSX boosted by mining stocks, Fed rate cut optimism
Canada's main stock index rose on Tuesday, rebounding after Friday's selloff, with investors optimistic about the U.S. Federal Reserve cutting interest rates in September. The Toronto Stock Exchange's S&P/TSX composite index rose 1.8% by 10:05 ET (0205 GMT) to 27,495.10 points, after three straight sessions of declines. Global stocks were lifted after traders ramped up bets of a U.S. rate cut in September to almost 94%, according to CME Fedwatch, following last week's soft U.S. nonfarm payrolls data. 'People see (unemployment numbers) as being the rationale for a reduction in interest rates at the Fed, and that's essentially positive for stock markets,' said Thomas Caldwell, Chairman at Caldwell Securities. 'Earnings are coming across fairly well and so the world is moving on, but there's this undercurrent of what will be the longer term damage of tariffs and this upending of world trade.' On the day, material stocks were among top gainers, with gold mining stocks adding 6%. Kinross Gold Corp gained 9% to the top of the index while Novagold, IAMGOLD and Seabridge Gold were up more than 5% each. First Quantum Minerals' shares rose 4.4% after the miner signed a $1 billion deal with Royal Gold. Tech stocks rose 2.8%, boosted by e-commerce platform Shopify's 5.43% climb after brokerage Benchmark raised its target price ahead of earnings on Wednesday. Electronics firm Celestica rose 3% and cybersecurity firm Blackberry climbed 3.4%. All sectors were in the green after TSX posted its biggest decline since April in Friday's selloff. Data showed Canada's merchandise trade deficit widened in June to C$5.9 billion ($4.24 billion) with imports outpacing exports. Canadian ministers are set to start discussing trade with Mexican President Claudia Sheinbaum on Tuesday. U.S. President Donald Trump put a 35% tariff on goods imported from Canada last week.
Business Recorder
an hour ago
- Business Recorder
Indian jeweller Titan eyes shifting some manufacturing to Gulf as US trade tensions escalate
DUBAI: India's biggest jeweller and watchmaker Titan is exploring shifting some manufacturing to the Middle East Gulf to maintain low-tariff access to U.S. markets amid trade tensions between Washington and New Delhi, Managing Director C.K. Venkataraman said on Tuesday. Titan, part of the Tata Group conglomerate, announced this month plans to acquire a majority stake in Dubai-based luxury retailer Damas, which operates 146 stores across the Gulf. In light of the deal, valued at $283 million, Venkataraman told Reuters the region is being considered 'as a manufacturing base to export to the U.S.' His comments reflect how global companies may seek new routes to navigate trade barriers, as the U.S. levies or threatens tariffs on international trade partners. Last month, U.S. President Donald Trump slapped a surprise 25% tariff on imports from India and threatened further hikes this week over India's purchases of Russian oil. In contrast, the United Arab Emirates faces a 10% tariff under Trump's baseline rate. Indian jeweller Titan to buy large stake in Dubai's Damas Titan's Tanishq brand has several U.S. stores and is planning a major expansion, while its diamond-focused label CaratLane launched in the U.S. in October, the company said. Titan began talks to buy Damas in 2024, before U.S. trade policy shifts came into focus. Shifting some manufacturing to a Gulf Cooperation Council country would be a way to mitigate recent rises in U.S. tariffs, Venkataraman said in a video call with Reuters. The U.S. is a less feasible manufacturing base due to cost and skills constraints, especially for artisan-made jewellery, he said. 'If the tariffs remain like what they are currently threatened to be, then any arbitrage on a tariff … any significant arbitrage would be meaningful for us to consider,' Venkataraman said.
