Gold prices firmed as weaker-than-expected jobs data fueled hopes of the U.S. Federal Reserve cutting rates sooner than anticipated, while investors also awaited the upcoming non-farm payrolls report for further cues on monetary policy.
The U.S. dollar rose against major currencies as data supported market expectations of a Federal Reserve interest rate cut, while the pound sterling fell amid a selloff in British government bonds.
Financial market bets rose that the Federal Reserve could start interest-rate cuts as soon as this month after Fed Chair Jerome Powell, asked if July was too soon to consider rate cuts, said he “can’t say” but that the decision would depend on the economic data.
The U.S. dollar gained ground against major currencies including the euro and the Swiss franc after data showed a better-than-expected increase in labor market demand, indicating the Federal Reserve will likely take its time to cut interest rates.
Oil prices edged higher as investors took stock of positive demand indicators, while also treading cautiously ahead of an OPEC+ meeting to decide the group’s August output policy.
Sterling was on track for its biggest quarterly rise against the dollar in more than two years on Monday, aided by weakness in the dollar across the board and optimism over a trade deal between the United States and Britain.
