Gold prices inched higher on Monday as a subdued dollar and lower bond yields amid a mixed bag of U.S. labour data allayed investor concerns about a faster policy tightening, helping the metal rise towards the $1,800 level once again.
Spot gold was up 0.2% at $1,790.70 per ounce by 10:31 am EDT (1431 GMT), after hitting its highest since June 18 at $1,794.86 on Friday. Most U.S. markets were closed on Monday for the Independence Day holiday.
The dollar has given up some of its recent strength, and gold is “currently holding on to some of Friday’s gains, once again challenging resistance ahead of $1,800,” said Saxo Bank analyst Ole Hansen.
At the same time, Friday’s “not too hot” jobs report “has further reduced the risk of any action by the FOMC sooner… allowing gold some room to the upside,” Hansen added.
Data on Friday showed U.S. companies in June hired the most workers in 10 months, but unemployment ticked higher, workforce participation didn’t budge and the pace of hourly earnings growth slowed.
On investors’ radar this week are minutes of the Fed‘s latest meeting due to be published on Wednesday, which could shed more light on policymakers’ views on inflation and monetary policy.
“The effects of the recent tilt of the Fed towards hawkishness had begun to wear-off with a number of Fed officials calming markets,” Avtar , senior commodities manager at Phillip Futures, said in a note.
Gold’s immediate resistance is at $1,800 an ounce and support at $1,750, he added.
Elsewhere, silver fell 0.3% to $26.38 per ounce, platinum was steady at $1,090.48, and palladium climbed 1.1% to $2,816.24.