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GOLD ADVANCES AHEAD OF FOMC MINUTES AS MARKETS REPRICE FED PATH

Published on Jul 06, 2026 15:04

Gold futures climbed above $4,200 an ounce on Monday, extending last week`s rally as weaker-than-expected US labor market data reinforced expectations that the Federal Reserve may adopt a less aggressive policy stance. June nonfarm payrolls increased by just 57,000�the slowest pace in four months�prompting markets to scale back the probability of a September rate hike from 65% to nearly 50�53%. The retreat in oil prices to pre-conflict levels has further eased inflation concerns, while softer Treasury yields continued to enhance gold`s appeal as a non-yielding asset. Although the US dollar index edged up to around 100.8, the broader decline in rate-hike expectations kept bullion well supported. Investors will now closely scrutinize the release of the FOMC meeting minutes later this week for fresh insights into the Federal Reserve`s policy trajectory and the outlook for precious metals.

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