Weaker U.S. payrolls data trimmed rate-hike expectations, supporting gold near a two-week high while the dollar hovered near a two-week low and investors awaited Fed June meeting minutes.
Gold steadied near a two-week high on Monday after weaker-than-expected U.S. labor data reduced expectations for another Federal Reserve rate increase, while the U.S. dollar held near a two-week low on the same shift in rates expectations. Spot gold was at $4,175.02 per ounce by 0028 GMT and August U.S. gold futures rose 1.5% to $4,186.80, after the metal gained more than 2% last week. Thursday's data showed U.S. job growth slowed sharply in June and payroll figures for the previous two months were revised lower, prompting traders to cut the odds of a September rate increase to about 55% from more than 60%, according to the CME FedWatch tool. Investors are now looking ahead to minutes from the Fed's June 16-17 meeting on Wednesday for further guidance on the policy outlook.