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Gold Dips on Strong Jobs Report: Fed’s Rate Cut Hopes Fizzle

Gold Dips on Strong Jobs Report: Fed’s Rate Cut Hopes Fizzle

Gold saw a more than one-week low on Monday due to a stronger dollar and higher bond yields following a robust U.S. jobs report.

Comments from Federal Reserve officials further diminished expectations of immediate interest rate cuts.

Spot gold dropped 0.6% to $2,027.09 per ounce, hitting its lowest level since January 25. U.S. gold futures settled 0.5% lower at $2042.9.

Jim Wyckoff, senior analyst at Kitco Metals, attributed the decline to the lingering impact of Friday’s strong jobs report, which boosted Treasury yields and the U.S. dollar index. Despite this, Wyckoff suggested gold might stay above $2,000 due to geopolitical uncertainties prompting safe-haven demand.

The dollar index rose 0.5%, reaching a three-month high, making gold more expensive for other currency holders. Yields on 10-year Treasury notes also reached a one-week high.

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U.S. nonfarm payrolls showed a significant increase of 353,000 jobs in January, dispelling expectations of an imminent Fed rate cut. Minneapolis Fed President Neel Kashkari and Fed Chair Jerome Powell emphasized the need for prudence in considering interest rate adjustments, given the strong economy.

Investors are now focusing on remarks from various Fed speakers for insights into the timing of potential rate cuts. In the broader market, spot silver fell 1.3% to $22.38 per ounce, while palladium remained stable at $946.96, and platinum saw a modest 0.8% increase to $897.65.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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