Gold surges above $4,200 as dovish fed expectations strengthen
Mumbai, July 6 -- Gold futures climbed above $4,200 an ounce on Monday, extending last week's rally as weaker-than-expected US labor market data reinforced expectations that the Federal Reserve may adopt a less aggressive policy stance. June nonfarm payrolls increased by just 57,000-the slowest pace in four months-prompting markets to scale back the probability of a September rate hike from 65% to nearly 50-53%. The retreat in oil prices to pre-conflict levels has further eased inflation concerns, while softer Treasury yields continued to enhance gold's appeal as a non-yielding asset. Although the US dollar index edged up to around 100.8, the broader decline in rate-hike expectations kept bullion well supported. Investors will now closely s...
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