The price of gold has also increased in recent days, as political uncertainty surrounding the general election is causing turbulence in local markets. This rise in local prices indicates a trend of increased demand for gold among local investors.
On the other hand, as of 1325 hours GMT, gold futures in the international market were available at $1,937.60 per ounce, showing a decrease of $2 (-0.10 percent). Out of the $2 decrease, +$3.55 was due to weakening of the US dollar and -$5.55 was due to predominant sellers, according to the Kitco Gold Index.
Gold price lost its traction and retreated to below the $1,940 area, erasing its earlier gains in the process. The US bond markets remained closed in observance of the Labour Day holiday on Monday, making it difficult for gold prices to gather directional momentum.
Gold prices traded back and forth from the past four trading sessions even though cooling labour market conditions boosted the Federal Reserve’s (Fed) soft landing hopes. A softening job market could mean that the Fed’s interest rate hike in July was the last one in the current policy tightening spell. The precious metal remains calm, but a power-pack action is expected after the release of the Services PMI data on Wednesday.
