Gold succumbs to profit-taking after US jobs data-fuelled rally
(Reuters) -Gold prices slipped on Monday as investors booked profits after a sharp rise in the previous session following weaker-than-expected U.S. jobs data that boosted expectations for a Federal Reserve interest rate cut in September.
Spot gold lost 0.3% to $3,354.17 per ounce as of 0229 GMT. Bullion had risen more than 2% on Friday. However, U.S. gold futures gained 0.2% to $3,407.10.
"Gold has made a conservative start to the week following Friday's price jump. A combination of profit taking and dollar stabilisation has caused gold to ease marginally to kick-off the week," KCM Trade Chief Market Analyst Tim Waterer said.
Asian markets tracked Wall Street lower as fears for the U.S. economy returned with a vengeance, prompting investors to price in an almost certain rate cut in September and undermining the dollar. [MKTS/GLOB]
Last week, U.S. job growth slowed more than expected in July, with nonfarm payrolls increasing by 73,000 jobs last month, after rising by a downwardly revised 14,000 in June, the Labor Department's Bureau of Labor Statistics said. This revived hopes of a Fed rate cut in September, with markets now pricing in an 81% chance, per CME FedWatch tool.
The tariffs U.S. President Donald Trump imposed last week on scores of countries are likely to stay in place rather than be cut as part of continuing negotiations, Trade Representative Jamieson Greer said in comments aired on Sunday.
"But with Trump on the tariff warpath once again, and the soft U.S. jobs report increasing the odds that we could see a September FOMC rate cut, any pullbacks in the precious metal could be of a shallow nature," Waterer added.
Gold, traditionally considered a safe-haven asset during political and economic uncertainties, tends to thrive in a low-interest-rate environment.
Spot silver fell 0.6% to $36.80 per ounce, platinum slipped 0.6% to $1,307.02 and palladium eased 0.9% to $1,197.76.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 minutes ago
- Yahoo
Warner Bros. earnings, Fed talk, jobless claims: What to Watch
Asking for a Trend host Josh Lipton takes a look at the top stories for investors to watch on Thursday, Aug. 7. In the morning, Eli Lilly (LLY), Toyota (TM), ConocoPhillips (COP), Constellation Energy (CEG), and Warner Bros. Discovery (WBD) will report earnings. In the afternoon, Take-Two (TTWO) will report results. Atlanta Federal Reserve President Raphael Bostic will deliver remarks. Initial jobless claims data for the week ending Aug. 2 will be posted in the morning. Economists are expecting an uptick from the previous reporting period. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend. Time now for what to watch Thursday, August 7th, starting off on the earnings front. No rest for the weary this earnings season. We'll be getting some more reports on Thursday. It's going to include Eli Lilly, Toyota and Take Two Interactive. Eli Lilly announced the results for the second quarter before the markets open. Obesity drugs will remain in focus for Eli Lilly and new drugs in the pipeline. It's coming against the backdrop of President Trump's looming tariffs on the pharma industry, and also saying the company's full year financial guidance could also be raised barring any major surprises in the quarter. And turning to the Federal Reserve, Atlanta Fed President Rafael Bostic is speaking on Thursday. This is coming after continuing commentary from President Trump around a potential successor for Fed Chair Jerome Powell. Trump saying on Tuesday that the list is down to four people, but that Treasury Secretary Scott Bessette will not be nominated for that role. And finally, we're going to be getting some fresh jobs data on Thursday with weekly initial jobless claims, economists forecasting claims to tick up to 222,000, signaling what could be more softening in the labor market.
Yahoo
3 minutes ago
- Yahoo
Japan urges US to swiftly implement auto tariff cut
TOKYO (Reuters) -Japan's top trade negotiator Ryosei Akazawa requested that the U.S. swiftly implement measures agreed upon in a bilateral trade deal, including lowering automobile and auto parts tariffs, Japan's government said on Thursday. The request was made during Akazawa's 90-minute meeting with U.S. Secretary of Commerce Howard Lutnick in Washington on Wednesday, Japan's government said in a statement. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 minutes ago
- Yahoo
SoftBank's AI investment spree to be in focus on at Q1 earnings
By Anton Bridge TOKYO (Reuters) -When Japan's SoftBank Group reports earnings on Thursday, its mammoth investments in artificial intelligence companies are set to take the spotlight. Analysts and investors are keen for updates on how they will be financed, the timeline for returns to materialise and whether assets will be sold to fund the new projects. SoftBank has embarked on its biggest spending spree since the launch of its Vision Funds in 2017 and 2019. It is leading a $40 billion funding round for ChatGPT maker OpenAI. SoftBank has until the end of the year to fund its $22.5 billion portion, although the remainder has been subscribed, according to a source familiar with the matter. It is also leading the financing for the Stargate project - a $500 billion scheme to develop data centres in the United States, part of its effort to position itself as the "organiser of the industry," founder Masayoshi Son said in June. SoftBank has yet to release details on what kinds of returns its financing of the Stargate project could generate. The extent of third-party investment will determine what other financing tools, such as bank loans and debt issuance, it may have to deploy. In July, SoftBank raised $4.8 billion by selling off a portion of its holding in T-Mobile. "If other sources of capital are less supportive, SoftBank could look to asset-backed finance, which is collateralised by equity in other holdings," Macquarie analyst Paul Golding said. The Japanese conglomerate is expected to post a net profit of 127.6 billion yen ($865 million) in the April-June quarter, according to the average estimate of three analysts polled by LSEG. That would mark SoftBank's second consecutive quarter of profit and follow its first annual profit in four years when it was helped by a strong performance by its telecom holdings and higher valuations for its later-stage startups. Its results are, however, typically very volatile and difficult to estimate due to manifold investments, many of which are not listed. SoftBank's performance in exiting from investments and distributing profits has been patchy of late. The Vision Funds had made a cumulative investment loss of $475 million as of end-March. That said, 13 of 18 analysts have a "buy" or "strong buy" rating for SoftBank's stock, according to LSEG. Although there is some concern in the market that AI-related valuations have become bubbly, they continue to climb. OpenAI is in early-stage discussions about a stock sale that would allow employees to cash out and could value the company at about $500 billion, according to the source - a huge jump from its current valuation of $300 billion. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
