Gold slipped from a near two-week high on Tuesday as the dollar firmed, though losses were capped by bolstered bets on Federal Reserve rate cuts, reports Reuters.
Spot gold was down 0.5% at $3,354.56 per ounce, by 1220 GMT. Bullion hit its highest since July 24 on Monday at $3,385.29. US gold futures also fell 0.5% to $3,408.20.
The dollar index rose 0.2% from a one-week low hit earlier in the session, reducing gold's appeal to other currency holders.
Data on Friday showed employment growth in the U.S. slowed more than anticipated in July, with payroll revisions for May and June slashing a hefty 258,000 jobs from previous tallies.
The CME FedWatch tool, opens new tab now puts the odds of a September cut at nearly 88%, up from 63% a week earlier, with markets largely pricing in at least two quarter-point reductions this year.
"What gold needs to move higher from here is probably (another) weaker U.S. economic data... The other item gold is watching is who U.S. President Trump names as next Fed Governor, potentially the successor of Federal Reserve chairman Jerome Powell," said UBS commodity analyst Giovanni Staunovo.
Trump's dismissal of the labour statistics chief following the weak payrolls report, coupled with news that he will appoint a new Fed governor, added to uncertainty.
Gold prices fall from two-week highs
FE Team | Published: August 05, 2025 22:19:56
Gold prices fall from two-week highs
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