Gold prices declined to trade around $2,660 per ounce on Monday, following a robust U.S. jobs report that boosted the dollar to a two-year high and solidified expectations that the Federal Reserve will proceed cautiously with interest rate cuts this year. The stronger dollar, which rose to its highest level since November 2022, made gold more expensive for overseas buyers, contributing to the decline. The decline was also partially attributed the drop some profit-taking after a strong week for gold. Ongoing policy uncertainties, including those related to President-elect Donald Trump's tariff hike plans, have increased inflation concerns, potentially enhancing gold's attractiveness as an inflation hedge. Investors are now looking ahead to U.S. inflation data, weekly jobless claims, and retail sales for further insights into the Fed’s policy direction. Higher interest rates tend to make non-yielding assets like gold less attractive.
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