From Investing.com: 2024-05-07 04:46:00

Gold prices held steady on Monday, gaining almost 1% as expectations of a US rate cut by the Federal Reserve and tensions in the Middle East increased demand for the safe-haven asset. The US employment growth in April was slower than expected, reinforcing the belief in a rate cut by the Fed. With uncertainty around the timing of the rate reduction, traders are closely watching geopolitical developments. Gold is currently trading within the 2,320–2,330 range, with key levels to watch at 2,300 and 2,330 as the week progresses.

The Euro saw a slight increase on Monday due to positive Eurozone PMI figures and confidence from the European Central Bank (ECB) that inflation is on track to meet the 2% target. ECB is considering an interest rate cut in June. Weak US labor data has further fueled expectations of a Fed rate cut, leading to a boost in euro strength. EUR/USD declined in Asian trading but awaits the eurozone Retail Sales report for potential gains.

The Japanese Yen weakened against the US Dollar on Monday due to a correction after last week’s interventions by Japanese authorities. Despite attempts to protect the yen from depreciation, market sentiment remains bearish on the currency. The Bank of Japan’s frequent interventions may lead to a long battle with a bullish market, making the yen’s movements unpredictable. USD/JPY was rising in Asian and European trading sessions, with possible future interventions adding uncertainty to the currency’s movements.



Read more at Investing.com: Gold Holds Steady on Rate Cut Expectations; Euro Rises Due to Strong PMI Figures