Gold holds gains around $4,350, with two-month highs at $4,380 under pressure.
Lower US yields amid signs of a loosening labour market are underpinning support for Gold
Gold (XAU/USD) holds moderate gains at the mid-range of the $4,300s on Monday, consolidating gains after a nearly 7.5% rally last week. The precious metal hovers just below the last two-month highs in the $4,380 area, buoyed by lower US Treasury yields, as traders cut back Federal Reserve (Fed) interest rate hikes following the negative surprise of last Friday’s Nonfarm Payrolls report. The US Dollar remains on its back foot this week, in the aftermath of Friday’s US Nonfarm Payrolls release, which showed a 23K decline in net employment in July, undershooting expectations of an 80K increase, and sharp downside revisions of the previous two months’ job gains.
Futures markets have scaled back hopes of a September rate hike to 44% from 67% in the previous week, sending the US Dollar lower across the board. Technical Analysis: Gold remains steady despite overbought RSI levels XAU/USD trades at $4,343, maintaining its bullish near-term bias intact. The 4-hour Relative Strength Index (14) has reached overbought levels, but downside attempts remain limited so far.