FX.co ★ Gold Hovers Near Record High

Gold futures remained stable at approximately $3,590 per ounce on Monday, hovering near record highs. This steadiness follows the release of a weaker-than-anticipated US jobs report last Friday, which has heightened expectations for a Federal Reserve interest rate reduction later this month. Specifically, the US economy saw a modest increase in jobs in August, combined with a rise in unemployment to its highest since 2021, indicating a softening labor market. Market participants now perceive a 92% probability of a 25 basis point cut at the forthcoming Federal Reserve meeting. In addition to the economic data, concerns regarding the Federal Reserve's autonomy continue as President Donald Trump persistently exerts influence over the central bank. Meanwhile, the People's Bank of China expanded its gold reserves for the tenth consecutive month in August as part of its strategy to diversify away from reliance on the US dollar. In a related development, the Trump administration announced on Friday the exemption of gold, along with certain other metals, from its country-specific tariffs, influencing trade dynamics.