Investing.com - Gold prices were near flat on Monday in Asia as traders remained cautious ahead of a congressional testimony by Federal Reserve Chairman Jerome Powell later this week.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange were up 0.02% at $1,401.25 a troy ounce by 12:16 AM ET (04:16 GMT).
On Friday, the U.S. reported a higher-than-expected rise in June’s U.S. jobs. The country added 224,000 new jobs during the month, according to the report. Meanwhile, the jobless rate rose to 3.7% from 3.6% and wages grew by an unchanged 3.1%.
The data cut market expectations for interest-rate cuts from the Fed and helped boost the U.S. dollar to two-week highs, putting pressure on gold prices that ended the week down 1% and snapped two weeks of gains.
Traders now await an upcoming testimony from Powell on Wednesday and Thursday for more hints on the direction of future monetary policies.
The market is "wondering now whether the rebound in employment growth has reduced the need for a rate cut in July, especially in light of trade talks between the US and China resuming”, said Fawad Razaqzada, technical analyst for precious metals and currencies at FOREX.com.
“We think not."
The Consumer Price Index report due later this week and the European Central Bank's July 25 meeting could change matters, Razaqzada added.