Gold prices took a slight breather on Monday, August 4th, 2025, easing just a bit after last week’s impressive rally. The pullback wasn’t dramatic, just 0.1% off to $3,359.99 per ounce, but it was enough to remind investors that nothing moves up in a straight line.
So, what caused the soft dip? A mix of slightly stronger U.S. Treasury yields and a wave of profit-taking by traders looking to lock in gains from Friday’s surge.
Last week, gold soared more than 2% after a weaker-than-expected U.S. jobs report sparked speculation that the Federal Reserve may cut interest rates as early as September.
That momentum carried over into the new week, just not with the same intensity. While spot gold edged down, U.S. gold futures rose by 0.4% to $3,413.40, indicating that some investors are still betting on further upside.
What’s weighing on gold for now? Yields. Specifically, the 10-year Treasury yield nudged higher from Friday’s five-week low, which naturally made non-yielding assets, such as gold, a little less attractive.
At the same time, the stock market caught a rebound, and the U.S. dollar stabilized, both of which encouraged a “buy-the-dip” attitude in equities rather than in safe-haven assets.
Still, gold isn’t out of the race. Ole Hansen, head of commodity strategy at Saxo Bank, pointed out that the market remains range-bound for now.
Monday’s pullback was pretty much expected given Friday’s big moves in both yields and stocks. According to Hansen, a push past $3,430 could ignite some serious momentum buying, as traders look to ride the next wave upward.
Meanwhile, macroeconomic and political factors continue to support a bullish case for gold. U.S. nonfarm payrolls rose by only 73,000 in July, a far cry from what analysts were expecting. June’s numbers were also revised down significantly to just 14,000.
That slowdown in hiring is feeding into growing market expectations of a Fed rate cut in September, with CME’s FedWatch tool showing a 78% probability of that happening.
In addition to rate speculation, broader concerns like stagflation and slowing U.S. growth are keeping sellers on edge.
Citi analysts have taken note, too; they just raised their three-month gold price forecast to $3,500 per ounce, up from $3,300, citing deteriorating near-term outlooks for both inflation and economic momentum in the U.S.
On the political front, things are equally interesting. U.S. President Donald Trump announced plans to nominate a new candidate to fill a vacant seat on the Federal Reserve Board after Governor Adriana Kugler’s early resignation.
And on the trade side, the new tariffs imposed by the Trump administration are expected to remain in place during ongoing negotiations, according to Trade Representative Jamieson Greer.
Elsewhere in the metals market, silver rose 0.9% to $37.34 per ounce, platinum added 0.4% to reach $1,320.19, while palladium slipped 0.2% to $1,205.93.
These movements, though smaller in scale, reflect the same underlying dynamics, investors navigating a shifting macro landscape marked by rate cut hopes, political surprises, and a cautious but persistent appetite for safe-haven assets.
So yes, gold may have eased a bit, but it’s far from losing its shine. In fact, if the current narrative holds, soft jobs data, rate cut potential, and geopolitical uncertainty, the yellow metal might just be gearing up for its next leg higher.
