Gold rose over 2% last week
NFP is strong, but wage growth is slowing
The rate hike is expected to be smaller
Gold prices strengthened on Monday as the US dollar edged lower as US NFP data reinforced expectations of a smaller rate hike from the Federal Reserve (Fed).
In the Asian session, the yellow metal traded higher at a 7-month high of $1,878 an ounce. Gold futures were higher at $1,883 an ounce.
Although the increase in employment recorded in the NFP was stronger than expected, it was the smallest increase in 2 years.
In addition, annual wage growth was recorded to be slower than initially expected to the lowest rate since August 2021.
The streak, market players saw the report as dovish for a smaller interest rate hike from the Fed.
Also supporting that view is the US ISM services PMI data which showed contraction in December.
Following that, the US dollar and the 10-year US treasury yield slid lower thus benefiting the yellow metal to strengthen.
Gold ended last week's trade up more than 2%, making it the precious metal's third straight weekly gain.
