Gold futures closed higher Monday, shrugging off Friday’s weakness, to end back above the key $1,800 level. Gold for December
ended 0.8% higher, up $14, to settle at $1,805.20 an ounce on Comex, according to FactSet. That was gold’s best daily gain since August 4 when the most-active contract jumped 1.7%. The yellow metal’s rally follows Friday’s surprising red-hot labor report for July, with many investors now anticipating another large 75 basis point rate increase from the Federal Reserve at its next policy meeting in September. The central bank has been working to cool inflation last pegged at a 41-year high, with a fresh update due Wednesday, but with the central bank also facing a backdrop of strong wage gains that could keep household demand robust. The ICE US Dollar index
fell 0.3% Monday against a basket of rival currencies, while the 10-year Treasury yield slumped 7 basis points to 2.76%.
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