Gold lingers near one-month high on Fed rate-cut bets
Gold prices eased slightly after reaching a one-month high due to expectations of a Fed rate cut in September. Unemployment rate increase supports rate cut speculation. China's central bank refrains from gold purchases. Indian dealers offer discounts. Perth Mint reports decline in gold and silver sales.
eased on Monday but hovered near a more than one-month high scaled in the previous session, after softer boosted prospects of an by the in September.FUNDAMENTALS
* Spot gold was down 0.2% at $2,386.58 per ounce, as of 0022 GMT, after rising to its highest level since May 22 on Friday. U.S. gold futures eased 0.2% to $2,393.80.
* Data on Friday showed that the hit a 2-1/2-year high of 4.1%, pointing to a slackening labour market.
* Markets are expecting a 78% chance of a September rate by the U.S. , according to CME's Fedwatch Tool. Traders are also pricing in a rising chance of a second rate cut in December.
* Lower rates reduce the opportunity cost of holding non-yielding bullion.
* However, bullion prices were capped by news that top consumer China's central bank refrained from gold purchases to its reserves for a second consecutive month in June.
* Last week, in offered discounts due to high prices, as they await a potential in the upcoming budget.
* Elsewhere, Perth Mint's gold product sales dipped, while silver sales dropped to their lowest level since June 2019, the refiner said on Friday.
* Spot silver fell 0.2% to $31.15, platinum edged 0.3% lower to $1,024.00 and palladium slipped 0.8% to $1,017.78.
