Gold prices eased slightly on Monday, slipping 0.2% to $3,356.91 per ounce after a strong rally the previous week.
The retreat followed a rise in U.S. Treasury yields and some profit-taking after Friday’s roughly 2% gain. Still, sentiment in the bullion market remains largely positive. Recent weak U.S. jobs data has bolstered expectations that the Federal Reserve may cut interest rates as soon as September, supporting demand for gold as a hedge against economic uncertainty.
Reflecting continued confidence in the metal, investment bank Citi raised its three-month gold price target to $3,500 per ounce, pointing to concerns about U.S. economic growth as a key driver for higher prices.
Market participants will be watching upcoming economic releases and central bank communications closely for signals on the timing of monetary easing. If inflation trends and labor-market indicators continue to soften, expectations for rate reductions could strengthen further, potentially providing additional upside for gold. Conversely, a sustained pickup in Treasury yields or unexpectedly robust economic data could limit near-term gains.
For now, the market balance looks tilted toward bullish expectations, supported by macroeconomic uncertainty and the prospect of easier monetary policy, even as short-term volatility and profit-taking remain part of day-to-day price action.