Gold edged lower to $2,435 on Monday during the early Asian session as market sentiment hinged on increased expectations of a rate cut by the Federal Reserve (Fed) and ongoing geopolitical tensions in the Middle East.
Meanwhile, the price of gold is now at $2,436.82 which is down by 0.28% since it opened at the beginning of the Asian trading session on Monday.
Disappointing US jobs data in July raised fears of a recession and raised the possibility of an aggressive Fed rate cut at its September meeting.
Markets are pricing in a chance of a 70% US interest rate cut by 50 basis points at the September FOMC meeting.
The US Bureau of Labor Statistics (BLS) showed on Friday that Non-Farm Payrolls (NFP) data rose by 114,000 in July from the previous 179,000 which was weaker than the 175,000 expected.
Meanwhile, the US unemployment rate rose to its highest level since November 2021 reaching 4.3% in July from 4.1% for June.
For now, investors will take more cues from Monday's US ISM Services Purchasing Managers' Index (PMI) which is expected to rise to 51.0 in July from 48.8 in June.
The strengthening of the report is likely to support the position of the US dollar and limit the rise of gold to continue to climb.
Additionally, escalating geopolitical tensions in the Middle East may continue to help increase flows as a safe-haven asset.
According to reputable media, the BBC reported that several countries urged their citizens to leave Lebanon due to rising concerns in the Middle East.
Top US military officials stressed preparations for an attack on Israel by Iran in response to the assassination of senior Hamas and Hezbollah leaders.
