Gold eases on profit-taking

Gold edged lower on Monday as investors booked profits after a sharp rise in the previous session after weaker-than-expected US jobs data boosted hopes for a US Federal Reserve interest rate cut in September.

Spot gold lost 0.1 percent to $3,361.32 per ounce, as of 0655 GMT. Bullion rose more than 2 percent on Friday. However, US gold futures gained 0.4 percent to $3,414.20.

"Gold has made a conservative start to the week following Friday's price jump. A combination of profit-taking and dollar stabilisation has caused gold to ease marginally to kick-off the week," KCM Trade chief market analyst Tim Waterer said.

Last week data showed that nonfarm jobs increased by 73,000 in July, after a downwardly revised gain of 14,000 in June. This revived hopes of a Fed rate cut in September, with markets now pricing in an 81 percent chance, per CME FedWatch tool, opens new tab.

The tariffs imposed by US President Donald Trump last week on scores of countries are likely to stay in place rather than be cut as part of continuing negotiations, Trade Representative Jamieson Greer said on CBS show "Face the Nation", aired on Sunday.

"But with Trump on the tariff warpath once again, and the soft US jobs report increasing the odds that we could see a September FOMC rate cut, any pullbacks in the precious metal could be of a shallow nature," Waterer said.

Gold, traditionally considered a safe-haven asset during political and economic uncertainties, tends to thrive in a low-interest-rate environment.

Citi raised its gold price forecast over next three months to $3,500 per ounce from $3,300, and the expected trading range to $3,300–$3,600 from $3,100–$3,500, on the belief that near-term US growth and inflation outlook has deteriorated.