Gold pulls back from May high on profit-taking — TradingView News

Gold pulls back from May high on profit-taking — TradingView News
Gold pulls back from May high on profit-taking — TradingView News

Gold prices fell on Monday as investors took profits after bullion hit a more than one-month high in the previous session on mounting bets of U.S. interest rate cuts in September.

Gold in cash GOLD fell 0.4% to $2,382.17 an ounce by 0346 GMT, after hitting its highest level since May 22 on Friday. U.S. gold futures GOLD fell 0.3% to $2,391.10.

Thomson ReutersSpot gold price in USD per oz

The unemployment rate hit a 2-1/2-year high of 4.1%, pointing to a weaker U.S. labor market, according to data on Friday.

“There’s a bit of profit-taking this morning because we had a very significant rally on Friday night after the payrolls data,” said Kyle Rodda, financial markets analyst at

Markets see a 78% chance that the Federal Reserve will cut interest rates in September, according to CME’s Fedwatch tool. Traders are also pricing in the possibility of a second rate cut in December.

Lower rates reduce the opportunity cost of holding gold, which pays no interest.

This week, the market will focus on Fed Chair Jerome Powell’s semi-annual testimony before Congress, comments from a number of senior Fed officials, and US inflation data.

According to City Index analyst Matt Simpson, a weak inflation report and a more dovish monetary tone from Powell at his speech seem like the ideal catalysts for gold to reach new highs.

Meanwhile, China’s central bank, the world’s largest consumer, refrained from purchasing gold for its reserves for a second consecutive month in June.

“China may have paused its gold purchases, but there is still demand for it overall. And that is likely to keep gold on bulls’ watch lists and tempt bullish bets on any dip,” Simpson said.

Silver in cash ANGLEUSD1! fell 0.5% to $31.06, after hitting a one-month high in the last session. Platinum PL1! fell 0.7% to $1,019.24 and palladium XPDUSD1! fell 1.8% to $1,007.66.

For Latest Updates Follow us on Google News


PREV Cardinals forced to clarify that home run celebration is not a tribute to Trump’s survival of assassination attempt
NEXT Dogecoin’s Next Move: Analyst Predicts Possible 66% Surge