Shafaq News
Gold prices retreated from two-week highs on Monday,pressured by a firmer U.S. dollar, though losses were limited as signs of acooling U.S. labour market eased expectations of a Federal Reserve rate hike.
Spot gold was down 0.8% at $4,143.12 per ounce by12:02 p.m ET (1602 GMT) after hitting its highest since June 22.
U.S. gold futures for August delivery climbed 0.7% to$4,155.50 per ounce.
"The US dollar index is a little higher todayand that is a daily bearish element (for gold)," said Jim Wyckoff, amarket analyst at American Gold Exchange.
The dollar gained 0.2%, making the yellow metal moreexpensive for overseas buyers.
Data last week showed a marked slowdown in U.S. jobgrowth in June alongside downward revisions to payrolls for the prior twomonths, leading markets to scale back expectations of a near-term Fed ratehike.
While gold is often seen as a hedge againstinflation, higher interest rates tend to negatively impact the non-yieldingbullion.
Investors now await the minutes from the Fed's lastmeeting, due on Wednesday.
"Traders are going to be examining those minutesto see if they can glean any other clues for the trajectory of U.S. monetarypolicy and any surprises that come out of those minutes would certainly bemarkets moving," Wyckoff said.
Market participants are now pricing in about a 57%chance of a rate hike in September, according to the CME FedWatch Tool.
J.P Morgan said in a note on Friday that demand forgold from key sectors would not be as strong as it had expected, limiting therise in gold prices this year to $4,300/oz in the third quarter and $4,500/ozin the fourth quarter.
Among other metals, spot silver dropped 1.2% to$61.63 per ounce after hitting its highest since June 23 earlier.
Platinum fell 0.7% to $1,626.10, and palladium slid0.8% to $1,264.16 per ounce.
(Reuters)
Only the headline is edited by Shafaq News Agency.