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Gold slides as US jobs data dampens bets of early rate cut

·1 min

Gold prices declined on Monday as the U.S. dollar and Treasury yields rose due to a strong jobs report, diminishing expectations of upcoming interest rate cuts by the Federal Reserve. Spot gold dropped by 0.5% to $2,029.03 per ounce, while U.S. gold futures fell 0.4% to $2,045.50 per ounce. Traders are now speculating on fewer Fed rate cuts for 2024 compared to last week. Lower interest rates typically increase the attractiveness of non-yielding gold. The dollar index reached an eight-week high, making gold more expensive for holders of other currencies. Investors are awaiting remarks from various Fed speakers this week for further insight regarding rate cuts.