Gold prices dipped on Monday as investors took profits after a strong rally on Friday fuelled by rising bets on US interest rate cuts in September. Spot gold fell 0.4 per cent to $2,382.17 per ounce at 0346 GMT, after hitting a peak on Friday. US gold futures also eased slightly, down 0.3 per cent to $2,391.10. Friday's data showed the US unemployment rate reaching a 2-and-a-half-year high of 4.1 per cent, indicating a potentially softening labour market. According to CME's Fedwatch Tool, markets are now pricing in a 78 per cent chance of a September rate cut, with some traders even pricing in a possibility of a second cut by December. Investors are closely watching key events this week for further direction. These include Fed Chair Jerome Powell's testimony before Congress, comments from other Fed officials, and the release of US inflation data. Analysts believe a dovish tone from Powell combined with a soft inflation report could send gold prices to new highs. Meanwhile, China's central bank, the world's top gold consumer, refrained from adding gold to its reserves for a second consecutive month in June. Spot silver mirrored gold's decline, falling 0.5 per cent to $31.06 per ounce after reaching a one-month high in the previous session. Platinum and palladium also saw losses, with platinum edging down 0.7 per cent to $1,019.24 and palladium dropping 1.8 per cent to $1,007.66. Attribution: Reuters
