By Myra P. Saefong and Rachel Koning Beals
Gold futures on Monday attempted to stage a rebound after suffering from their largest weekly decline since mid-July.
Strength in the dollar kept gains for the metal in check, with traders eyeing the monthly U.S. jobs report due at the end of the week as the next major catalyst in the market’s effort to solidify their expectations for the Federal Reserve’s monetary policy.
December gold GCZ6, +0.08% added $1.40, or 0.1%, to $1,327.30 an ounce. After Fed members stoked speculation for a rate increase sooner rather than later, gold futures fell about 1.5% last week, the biggest weekly decline since July 15, FactSet data showed.
“The price of the yellow metal is still in the consolidation phase,” said Nico Pantelis, head of research at Secular Investor.
He said gold prices could reach lows around $1,280 in the next few weeks, with “late summer doldrums” in gold possibly lasting into September and phasing out in October. But in the last months of the year, Pantelis said he expects the bull run for gold to resume—and it may climb to $1,400 or higher.
The dollar and gold were jostled in volatile trading after Federal Reserve Chairwoman Janet Yellen’s speech at the Kansas City Fed’s annual economic symposium at Jackson Hole, Wyo., on Friday. She said the case for an increase in the federal-funds rate had strengthened in recent months but would remain dependent on what incoming data say about the U.S. economy.