Gold prices retreated from two-week highs
on Monday, pressured by a firmer U.S. dollar, though losses were
limited as signs of a cooling U.S. labour market eased
expectations of a Federal Reserve rate hike.
Spot gold was down 0.3% at $4,163.64 per ounce by
2:45 p.m ET (1845 GMT) after hitting its highest since June 22.
US gold futures for August delivery settled 1%
higher at $4,167.50 per ounce.
“The US dollar index is a little higher today and that is a
daily bearish element (for gold),” said Jim Wyckoff, a market
analyst at American Gold Exchange.
The dollar gained 0.1%, making the yellow metal more
expensive for overseas buyers.
Data last week showed a marked slowdown in U.S. job growth
in June alongside downward revisions to payrolls for the prior
two months, leading markets to scale back expectations of a
near-term Fed rate hike.
While gold is often seen as a hedge against inflation,
higher interest rates tend to negatively impact the non-yielding
bullion.
Investors now await the minutes from the Fed’s last meeting,
due on Wednesday.
“Traders are going to be examining those minutes to see if
they can glean any other clues for the trajectory of U.S.
monetary policy and any surprises that come out of those minutes
would certainly be markets moving,” Wyckoff said.
Market participants are now pricing in about a 57% chance of
a rate hike in September, according to the CME FedWatch Tool.
J.P Morgan said in a note on Friday that demand for gold
from key sectors would not be as strong as it had expected,
limiting the rise in gold prices this year to $4,300/oz in the
third quarter and $4,500/oz in the fourth quarter.
Among other metals, spot silver dropped 0.3% to
$62.17 per ounce after hitting its highest since June 23
earlier.
Platinum fell 0.4% to $1,630.86, and palladium
firmed 0.1% to $1,275.43 per ounce.
Published on July 7, 2026
