Comex gold was trading at $4,109.90 per ounce, up $2.90 or 0.07%, after touching an intraday high of $4,145.50an ounce. Silver climbed to $58.415 per ounce, gaining 1.09% during the session.
The modest recovery in bullion came after oil prices fell sharply following comments from US President Donald Trump indicating that he was holding off on fresh military action against Iran to allow more time for negotiations. The remarks raised hopes of reduced geopolitical tensions and eased fears of further disruption to global oil supplies.
Lower crude oil prices can help moderate inflation expectations. However, analysts noted that gold’s gains remained limited as markets continued to assess the outlook for US interest rates.
Gold, traditionally viewed as a safe-haven asset and an inflation hedge, tends to lose some appeal when interest rates are expected to remain elevated because the metal does not offer any yield.
The Federal Reserve remains a key focus after three policymakers who dissented at last week’s policy meeting reiterated concerns that inflation could remain above the central bank’s 2% target unless borrowing costs are raised further.
US jobs data in focus
Investors are now awaiting a series of US economic releases this week, including job openings data, the ADP private employment report, weekly jobless claims and the closely watched non-farm payrolls report. The data could provide fresh clues on the Fed’s next policy move.
Stronger-than-expected labour market data could reinforce expectations of tighter monetary policy, while weaker readings may revive hopes of policy easing, influencing bullion prices.What analysts are watching this week
Analysts expect precious metals to remain range-bound in the near term, with price direction likely to be driven by US macroeconomic data and evolving expectations around the Federal Reserve’s policy stance.
Apart from US employment data, investors will track manufacturing PMI readings from the US, Eurozone, UK and Japan, along with developments in the West Asia and movements in crude oil prices, all of which could influence sentiment in the bullion market.
Despite the uptick on Monday (August 3), analysts say gold is likely to remain sensitive to shifts in interest rate expectations, while silver could continue to witness relatively stronger price swings due to its industrial demand component.
-With agencies inputs
