By Anushree Mukherjee and Brijesh Patel
(Reuters) – Gold prices steadied on Tuesday, hovering near a more than one-week high hit in the last session, as a softer U.S. jobs bolstered hopes of a Federal Reserve rate cut in September, weighing on the dollar and Treasury yields.
Spot gold held steady at $3,371.40 per ounce as of 0432 GMT. Bullion hit its highest since July 24 on Monday. U.S. gold futures was unchanged at $3,425.30.
The dollar index traded near a one-week low, making gold more affordable to holders of other currencies. [USD/]
The yield on the benchmark 10-year Treasury note also hit a one-month low. [USD/] [US/]
“Short-term momentum has improved for the bullish side of the story… fundamental narrative supporting gold prices is that the Fed is still in the mode to actually cut rates in September,” OANDA senior market analyst Kelvin Wong said.
U.S. employment growth was softer than expected in July, while non-farm payroll figures for May and June were revised down by a massive 258,000 jobs, suggesting a deterioration in labor market conditions.
Traders now see a 92% chance of a September rate cut, per the CME FedWatch tool.
Gold, traditionally considered a safe-haven asset during political and economic uncertainties, tends to thrive in a low-interest-rate environment.
Meanwhile, U.S. President Donald Trump has again threatened to raise tariffs on Indian goods over its Russian oil purchases. New Delhi called his remarks “unjustified” and vowed to protect its economic interests, deepening the trade rift.
Still, gold faces some technical resistance. “I still do not see traders pushing up aggressively above the $3,450 level. Unless we have a very clear catalyst for gold price to actually pick up this level” Wong said.
Elsewhere, spot silver fell 0.1% to $37.37 per ounce, platinum lost 0.4% to $1,324.05 and palladium shed 0.4% to $1,201.47.
(Reporting by Anushree Mukherjee and Brijesh Patel in Bengaluru; Editing by Sumana Nandy and Sonia Cheema)
