The precious metal rose as much as 1% on Monday, following its first back-to-back weekly declines since February. Investors have been considering a weaker-than-expected US jobs report, which added to indications that the economy is gradually weakening, alleviating concerns that markets are heading for a prolonged rut typified by high inflation and poor growth.
Chicago Fed President Austan Goolsbee said Friday that further numbers like April’s would reassure him that the economy is not overheating, perhaps strengthening the argument for monetary easing this year. Higher rates are usually negative for bullion, which does not pay interest.
Despite the rising inflationary environment and uncertainty about when the US central bank would decrease interest rates, gold has risen by nearly 12% this year. In April, the metal reached a series of all-time highs thanks to a record-breaking advance, which was fueled by strong central-bank purchases, demand from Asian markets, and haven purchasing amid Ukraine and Middle East turmoil.
Bullion has become less appealing in recent weeks, as evidence indicate that the Middle East is moving away from a full-fledged conflict.
However, Israel’s military has begun to evacuate inhabitants from Rafah, possibly as a precursor to a long-awaited strike on the Gaza metropolis. The decision comes as cease-fire discussions between Hamas and Israel in Cairo appeared to stagnate over the weekend, with the Iran-backed terrorist group insisting on a permanent truce.