Gold prices remained largely unchanged on Monday after a sharp rally at the end of last week, as weak U.S. employment numbers bolstered expectations for interest rate cuts by the Federal Reserve.
At 05:00 ET (09:00 GMT), spot gold slipped 0.1% to $3,358.72 per ounce, while December gold futures rose 0.4% to $3,412.55 per ounce.
Friday’s labor report reignites gold bulls
Gold posted gains of more than 2% on Friday, rebounding after two consecutive weeks of losses. The move came in response to disappointing U.S. jobs figures, with nonfarm payrolls rising by just 73,000 in July—far below economists’ forecasts. Figures for May and June were also revised downward.
The unemployment rate crept up to 4.2%, signaling a cooling labor market and pushing traders to price in a higher likelihood of a September rate cut—now seen as a 90% probability.
Lower interest rates tend to boost demand for gold by making it more attractive compared to interest-bearing assets.
Tariff uncertainty adds fuel to gold demand
Gold also benefited from rising geopolitical uncertainty. President Trump’s decision to impose broad tariffs on imports from Canada, Brazil, India, and Taiwan heightened market anxiety.
These trade actions have stirred inflation fears and could ripple through global commerce, lifting demand for gold as a hedge.
Gold remains a popular choice among investors amid low yields and economic policy unpredictability.
Broader metals market trends mixed
Other precious metals saw upward momentum as well, with platinum futures climbing 1% to $1,329.50 per ounce and silver futures advancing 1.3% to $37.417.
In the copper market, prices edged up, with LME copper contracts gaining 0.9% to $9,726.10 a ton and U.S. copper futures rising 0.8% to $4.4695 per pound.
Despite these gains, copper remains under pressure after last week’s 20% plunge in U.S. markets. The drop came after President Trump removed refined copper from a planned 50% import tariff.
“The collapse of an arbitrage trade has left the U.S. with a huge buildup of copper stockpiles,” ING analysts said in a research note. “Copper inventories at Comex warehouses are at their highest in 21 years. That stockpile might now be re-exported.”
“This will be bearish for LME prices with more copper showing up in LME warehouses,” they added.
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