MTS Help Center

Gold hovered near one-week lows on Monday, after falling about 2 percent in the previous session, as a stronger-than-expected U.S. jobs report likely increased the possibility of a rate hike this year by the Federal Reserve.

Spot gold was nearly flat at $1,335.40 an ounce by 0323 GMT. It earlier touched its lowest since July 29 at 1,331.36.

Among other precious metals, spot silver hit a near 2-week low and was down 0.3 percent at $19.60 an ounce. It fell 3 percent on Friday.

"Gold prices have fully digested the nonfarm payrolls data," said OCBC Bank analyst Barnabas Gan.

"Yes, the U.S. economic fundamentals have picked up. But, the downside risks from whatever is happening from the Brexit is still unknown. Another uncertainty that market watchers will be looking at would be the U.S. presidential elections."

Spot gold may test resistance at $1,339 per ounce, with a good chance of breaking above this level and bouncing more towards the next resistance at $1,346, according to Reuters technical analyst Wang Tao.

Traders and top Wall Street banks expect the Fed to raise U.S. interest rates in 2016 after a strong July jobs report.

The upbeat data reignited speculation that the Federal Reserve will lift interest rates this year. Fed funds futures are currently pricing in a 15% chance of a rate hike by September. December odds were at around 44%, up from 33% ahead of the report.

Gold prices held lower in Asia on Monday, but copper gained as investors digested trade data from China that showed a wider than expected surplus. but downbeat imports.

China is the world's top copper importer and second largest gold buyer behind India.

Reference: Reuters, Investing