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Gold prices dip on Fed rate cut hopes
Gold prices slipped 0.43% to $3,351.80 per ounce on Monday, cooling off after a strong surge last Friday.
The drop followed weak US job numbers—only 73,000 new jobs in July—which pushed up hopes for a Fed rate cut in September.
Why gold is shining
Gold tends to shine when the economy looks shaky and interest rates are low.
With job growth slowing and talk of lower rates, gold is looking more attractive for investors seeking stability.
Even with today's dip, gold is still up over 39% from last year thanks to global tensions and central banks buying in.
What to expect?
Low US Treasury yields are fueling expectations of a rate cut soon—which usually helps gold prices rise.
Analysts say if cuts happen as expected, we could see gold prices increase by the end of this quarter.