Gold inches down as profit-taking seen

Gold prices edged down to around $3,350 per ounce on Monday, easing slightly as investors booked profits after Friday’s sharp rally—the metal’s biggest one-day gain in two months—driven by renewed expectations of a Federal Reserve rate cut and intensifying safe-haven demand.

Friday’s weaker-than-expected US employment report revealed the smallest monthly jobs gain in over a year, alongside significant downward revisions to prior months, reinforcing concerns about a potential slowdown in the world’s largest economy. As a result, traders have now priced in an 81% probability of a Fed rate cut in September, with growing consensus that another reduction could follow before year-end.

Gold’s pullback came as some market participants opted to lock in gains ahead of a busy week filled with key economic data releases and central bank commentary. Despite the slight retreat, underlying sentiment for gold remains firmly bullish, bolstered by geopolitical tensions and elevated inflation uncertainty.

Adding to the cautious mood, President Donald Trump’s announcement last week of sweeping new tariffs—ranging from 10% to 41%—on imports from more than 30 countries is fueling renewed concerns about global trade disruptions.

The tariffs, set to take effect on August 7, have sparked diplomatic pushback from several allies and could lead to retaliatory measures, further boosting gold’s appeal as a hedge against uncertainty.

Meanwhile, investors are also watching developments in China, where Beijing is expected to announce additional stimulus measures following signs of economic fragility. Any escalation in US-China trade tensions or signs of slowing global growth could add further support to the precious metal in the coming days.