Gold prices held near a two-week high on Monday after a cooler-than-expected U.S. jobs report last week slightly tempered expectations of interest rate hikes by the Federal Reserve. FUNDAMENTALS * Spot gold was steady at $4,175.02 per ounce by 0028 GMT, after posting a weekly gain of more than 2% following four straight weeks of declines on Friday. U.S. gold futures for August delivery climbed 1.5% to $4,186.80 per ounce. * Data on Thursday showed U.S. job growth slowed sharply in June and payroll gains for the prior two months were revised lower, pointing to a cooling labor market and prompting financial markets to dial back expectations for a near-term Fed rate hike. * Traders now see about a 55% chance of a rate increase in September, down from more than 60% before the data, according to the CME FedWatch tool. [FEDWATCH/] * Lower interest rates tend to be favorable to gold, as it is a non-yielding asset. * The release of the minutes from the Fed's June 16-17 meeting, Kevin Warsh's first as Fed chair, on Wednesday will be in focus for investors later this week. * JPMorgan said demand for gold from key sectors would not be as strong as it had expected, limiting the rise in gold prices this year to $4,300/oz in the third quarter and $4,500/oz in the fourth quarter. * Physical gold demand in India eased on Friday after a modest pick-up earlier in the week, as prices rebounded from a three-month low, while buying interest in China improved slightly. [GOL/AS] * Elsewhere, spot silver extended gains to a fifth session, up 0.1% at $62.4773 per ounce and earlier hitting its highest since June 23. * Spot platinum added 0.4% to $1,645.05 per ounce and palladium was up 0.1% to $1,275.18 per ounce. Both these metals were on track for their fourth straight daily gain. DATA/EVENTS (GMT) 0600 Germany Industrial Orders MM May 0600 Germany Manufacturing O/P Cur Price SA May 0600 Germany Consumer Goods SA May 0830 UK S&P GLOBAL PMI MSC Composite Output Jun 1345 US S&P Global Comp, Svcs PMI Final Jun 1400 US ISM N-Mfg PMI Jun
Gold trades near two-week high on cooling US rate-hike bets
Gold prices are holding firm near a two-week peak, buoyed by a recent U.S. jobs report that softened expectations for immediate Federal Reserve interest rate hikes. This cooling labor market data has led traders to scale back bets on a September rate increase. Investors are now keenly awaiting the Fed's meeting minutes for further clues on monetary policy direction, while demand in India saw a slight dip as prices rebounded.













