Gold prices stabilized near $4,190 per ounce on Monday, consolidating gains after posting its first weekly advance since May.
The precious metal’s resilience reflects a shifting market narrative, where concerns over imminent Federal Reserve rate hikes have receded following a weaker-than-expected US jobs report last week.
The soft employment data has significantly dampened expectations for aggressive monetary tightening, providing a tailwind for non-yielding assets.
Traders are increasingly pricing in a more dovish stance from the Fed, reducing the opportunity cost of holding gold.
This repricing marks a notable shift from the latter months of 2025, when repeated challenges to the Fed’s independence by the Trump administration had supercharged the bullion rally.
With rate-hike worries diminishing, the focus has turned to the sustainability of the current rally.