After a surge last week, gold prices retreated as traders moved to secure their gains.
However, gold has held near its one-month peak driven by weaker-than-expected US economic data.
The Non-Farm Payrolls (NFP) Report revealed slowing wage growth in the US, while the world’s largest economy also saw unemployment rise to 4.1%, indicating a weakening labour market.
At the same time, strong expectations of a potential rate cut by the Federal Reserve in September could continue to support gold prices.
This week, market attention is focused on Federal Reserve Chair Jerome Powell’s semi-annual Congressional testimony, comments from various Fed officials, and upcoming US inflation data.
New data could be crucial in shaping rate cuts expectations as dovish data and comments could provide additional support for the asset. Additionally, ongoing political risks in Europe after the election results in France and uncertainty regarding the presidential election in the US could potentially bolster gold as a safe-haven asset in the medium term.
