Shafaq News/ Gold prices held groundon Monday, buoyed by a weaker dollar and Treasury yields after US FederalReserve Chair Jerome Powell's dovish remarks cemented expectations for aSeptember rate cut.
Spot gold was steady at $2,511.04per ounce, as of 0311 GMT, after gaining more than 1% in the previous session.US gold futures were flat at $2,546.40.
Powell on Friday endorsed animminent start to rate cuts, saying further cooling in the job market would beunwelcome.
The dollar hovered near its lowestlevel in 13 months, making gold cheaper for other currency holders, whilebenchmark 10-year yields also slipped.
"Gold will remain in vogue withinvestors so long as the dollar remains on the back foot ahead of anticipatedrate cuts. If US yields remain suppressed, gold may fancy taking a run towards$2,550 this week if resistance around $2530 can be cleared first," saidTim Waterer, chief market analyst, KCM Trade.
"Gold has mostly been inconsolidation mode as traders toss up what size of rate cut we might see inSeptember."
Traders have fully priced in a cutfor next month, with a 64% chance of a 25-basis-point (bp) easing and 36%chance of a bigger 50-bp reduction, according to the CME FedWatch tool. A lowinterest rate environment tends to boost non-yielding bullion's appeal.
Elsewhere, Peru's gold exports toIndia are expected to jump 36% to a record $3 billion in 2024 due to risingdemand from the world's second-largest consumer, a senior official said onFriday.
On the geopolitical front, Hezbollahlaunched rocket and drone at Israel on Sunday, prompting Israeli airstrikes onLebanon, marking a major clash in 10 months of border conflict.
Spot silver fell 0.4% to $29.70 perounce, platinum declined 0.5% to $957.88 and palladium lost 0.8% to $954.92.
(Reuters)