Gold prices were trading slightly lower during Monday’s Asian session as the U.S. dollar strengthened following robust nonfarm payrolls data last week.
By 2:50 pm AEDT (3:50 am GMT) spot gold was just $1.55 or 0.1% lower at US$2,687.90 per ounce.
Persisting geopolitical risks and uncertainty surrounding President-elect Donald Trump’s administration are expected to support prices this week.
Friday’s stronger-than-expected U.S. nonfarm payrolls report bolstered expectations that the Federal Reserve would adopt a more cautious stance on rate cuts this year.
Market participants now anticipate the Fed to cut interest rates by just 27 basis points (bps) in 2025, down from the previously expected 50 bps before the employment data release. This shift has weighed on gold, a non-yielding asset traditionally sensitive to interest rate expectations.
Gold’s appeal as a safe haven remains intact amid geopolitical tensions in the Middle East and the ongoing Russia-Ukraine conflict. Israeli airstrikes continued in Gaza, targeting areas near Gaza City, Nuseirat, and Bureij.