Gold fell to $4,140 an ounce on Monday, retreating from two-week highs due to a stronger US dollar.
However, losses were limited as signs of a cooling US labor market reduced expectations of a Federal Reserve rate hike.
Last week’s data revealed a significant slowdown in US job growth in June, along with downward revisions for the previous two months, prompting markets to dial back near-term rate hike bets.
Meanwhile, oil prices edged lower as recovering energy flows through the Strait of Hormuz and the prospect of increased OPEC+ supply raised concerns about a potential glut.
Investors now await the Fed’s meeting minutes, due Wednesday, with markets pricing in over a 50% chance of a September rate hike.
JPMorgan noted in a Friday report that demand from key sectors may not be as strong as previously expected, capping gold’s rise to $4,300 an ounce in Q3 and $4,500 in Q4.