WASHINGTON (dpa-AFX) - Gold futures settled slightly down on Monday, losing ground for the second consecutive session, as Friday's data from the Labor Department showing a sharp jump in U.S. non-farm payroll employment in the month of September dimmed the prospects of an aggressive rate cut by the Federal Reserve in its next meeting.
The dollar's slight weakness and rising tensions in the Middle East limited the yellow metal's downside. The dollar index, which climbed to 102.62 in the European session, dropped to 102.37 later on in the day, and was at 102.48 a little while ago, down marginally from the previous close.
Gold futures for October ended down by $1.00 or 0.04% at $2,644.80 an ounce, dropping from a high of $2,657.40 an ounce.
Silver futures for October closed down $0.383 or about 1.19% at $31.745 an ounce.
Copper futures for October edged down by $0.0035 or 0.08% to 4.5190 per pound.
After Friday's blowout payrolls report, traders now price in only a quarter-point cut in interest rates at the Federal Reserve's next policy announcement on Nov. 7, with a small chance that the policy rate stays unchanged.
This week's U.S. economic calendar could give clues as to what to expect at the Federal Reserve's next meeting to be held in November.
Heading into the earnings season, the focus this week will be on U.S. consumer price inflation and producer price inflation data for last month as well as minutes from the Fed's September policy meeting.
On the geopolitical front, Israeli defense forces intensified air strikes targeting Gaza and the Lebanese capital of Beirut simultaneously on the first anniversary of Hamas' cross-border attack in Israel, which triggered the Middle East war.
Dozens were killed in air strikes on a mosque and a now defunct school, which were converted as refugee relief shelters Sunday, according to Gaza's Hamas-run health ministry. The Israeli military says Hamas militants were hiding there.
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