XAU/USD falls 0.5% to $4,153 as steady US yields offset Fed rate cut expectations after softer jobs data.
Gold (XAU/USD) declined 0.5% to $4,153 on Monday, reversing early gains as steady US Treasury yields and a resilient dollar capped upside. The retreat followed last week’s softer-than-expected US jobs report, which had prompted traders to price in a less hawkish Federal Reserve.
Prior to the drop, gold had rebounded from a two-week low after the non-farm payrolls (NFP) data missed forecasts, fueling bets on potential Fed rate cuts. However, persistent strength in US yields limited the metal’s recovery, keeping pressure on non-yielding assets.
Market focus remains on Fed policy signals, with traders assessing whether the central bank will ease monetary conditions in the coming months.