Gold prices stayed near a two-week high on Monday, after a U.S. jobs report from the previous week came in cooler than expected, which slightly eased expectations for interest rate hikes by the Federal Reserve. Spot gold held steady at $4,175.02 per ounce by 0028, marking a weekly rise of over 2% following four weeks of consecutive declines on Friday. Gold futures in the U.S. for August delivery rose by 1.5%, hitting $4,186.80 per ounce. Data released on Thursday showed a notable slowdown in U.S. job growth for June, with payroll figures for the previous two months being adjusted downward.

This development indicates a softening labour market, prompting financial markets to recalibrate their expectations concerning a potential rate hike by the Federal Reserve in the near future. Traders currently estimate a probability of around 55% for a rate increase in September, down from over 60% before the data, according to the CME FedWatch tool. Reduced interest rates generally benefit gold, given that it does not generate yield. The minutes from the Fed’s June 16-17 meeting, which marked Kevin Warsh’s first as Fed chair, will capture the attention of investors this week.

JPMorgan noted that demand for gold from key sectors is expected to be lower than earlier projections, limiting the rise in gold prices to $4,300 per ounce in the third quarter and $4,500 per ounce in the fourth quarter. Demand for physical gold in India decreased on Friday after a small uptick earlier in the week, as prices bounced back from a three-month low, while buying interest in China saw a slight improvement.

Elsewhere, spot silver continued its upward trend for a fifth session, rising 0.1% to $62.4773 per ounce and earlier reaching its highest level since June 23. Spot platinum increased by 0.4%, reaching $1,645.05 per ounce, while palladium saw a rise of 0.1%, settling at $1,275.18 per ounce. Both metals were set to reach their fourth consecutive daily rise.