Gold prices climbed during European trading on Monday, breaking a three-day decline streak and moving away from four-week lows, as the dollar weakened against major currencies.
Recent disappointing US labor data increased the likelihood of two interest rate cuts by the Fed this year, supporting gold prices.
Gold also benefited from concerns over escalating geopolitical tensions in the Middle East following the breakdown of Israel-Hamas ceasefire talks.
Prices
Gold prices surged by 1% to $2324 per ounce after hitting a session low of $2291. This followed a 0.1% decline on Friday, marking the second consecutive loss and reaching four-week lows of $2277 per ounce as risk appetite improved.
Gold experienced a 1.5% decline last week, marking the second consecutive weekly loss as profit-taking occurred after reaching record highs.
The Dollar
The dollar index dropped by 0.1% on Monday, extending its fourth consecutive session of losses and hovering near three-week lows against a basket of major currencies.
This decline occurred ahead of the release of US payrolls data for April, which fell short of expectations, reducing pressure on the Fed and potentially opening the door for multiple interest rate cuts this year.
Comments