Gold has climbed more than 13% this year, hitting a record earlier this month, despite the timeline for Fed cuts being pushed back. The US jobs report on Friday will also be critical for markets this week.
Elsewhere, the yen surged after touching its weakest level against the dollar in 34 years, amid speculation the Japanese government intervened to support its beleaguered currency for the first time since 2022. Any action could weaken the dollar, potentially boosting bullion.
The precious metal’s ascent over the past two months has been linked to central-bank purchases, robust demand from Asian markets especially China, and elevated geopolitical tension from Ukraine to the Middle East.
Gold lost some support as safe haven demand waned, with US Secretary of State Antony Blinken stepping up efforts to secure a truce in meetings in the Middle East on Monday.
Spot gold climbed 0.2% to $2,342.21 an ounce at 12:39 p.m. in London, after recording its first weekly decline since mid-March. The Bloomberg Dollar Spot Index fell 0.3%, following two weekly gains. Silver, palladium and platinum all gained.
(By Sybilla Gross)