Gold near a month-high supported by US rate cut bets

Gold prices fell today, Monday, but remained near the highest level in more than a month, which was recorded in the previous session, after weak US data raised the possibility of the US Federal Reserve reducing interest rates in September.

By 0022 GMT, gold in spot transactions fell 0.2% to $2,386.58 per ounce, after rising to its highest level since May 22 on Friday. Gold futures fell 0.2% to $2,393.80 an ounce.

Data on Friday showed that unemployment reached the highest level in two and a half years at 4.1%, indicating a slowdown in the labor market.

Markets expect a 78% chance of a September Fed rate cut, according to CME’s FeedWatch tool. Traders are also taking into account the increasing possibility of a second interest rate cut in December.

Lowering interest rates reduces the opportunity cost of holding non-interest-bearing gold.

As for other precious metals, silver fell in spot transactions by 0.2% to $31.15 per ounce, platinum fell by 0.3% to $1024 per ounce, and palladium fell by 0.8% to $1017.78 per ounce.