GOLD prices steadied on Monday (Jun 10) following a slide below the key US$2,300 level in the previous session on stronger-than-expected US jobs data that doused expectations for an early interest rate cut this year.
Spot gold was up 0.2 per cent at US$2,396.69 per ounce, as at 0146 GMT. US gold futures fell 0.5 per cent to US$2,313.60.
The US dollar rose 0.2 per cent against its rivals, making gold more expensive for other currency holders, while the benchmark US 10-year Treasury yields edged up.
Bullion fell more than 3 per cent on Friday after the strong jobs report and China data.
China’s central bank paused gold purchases to its reserves in May, when spot gold prices hit a record high, after 18 months of consecutive purchases, official data showed on Friday.
The US economy created far more jobs than expected in May and annual wage growth reaccelerated, underscoring the resilience of the labour market and reducing the likelihood the Federal Reserve will be able to start rate cuts in September.
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The data led traders to once again shift their expectations of when the Fed will cut rates and by how much. The chances of a rate cut in September are now at roughly 50 per cent, down from around 70 per cent late on Thursday.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
The Fed is not expected to make any change at its policy meeting this week but the focus will be on the comments from Fed chair Jerome Powell and changes to economic projections from the policymakers. US inflation data is also due on Wednesday.
Vietnam’s central bank said it “has enough recourses and determination” to stabilise the domestic gold market, amid a sharp rise in local gold prices this year.
Spot silver rose 1 per cent to US$29.48 per ounce, platinum was up about 1 per cent at US$973.20 and palladium gained 1.1 per cent to US$922.19. REUTERS
