Gold prices were flat yet again Monday morning in New York amid little reaction to Friday’s strong U.S. jobs report.
Traders remain confused about when the Federal Reserve intends to raise interest rates, with some betting on the summer and others thinking tightening is a way’s off.
Gold for June was down 3 dollars at $1186 an ounce having bounced back and forth near this level since mid-March.
Holdings in SPDR Gold Trust, the top gold-backed exchange-traded fund, fell sharply on Friday, suggesting gold has lost some of its appeal.
Chinese stimulus failed to trigger any fresh buying over the weekend.
The one-year lending rate would be reduced by 25 basis points, or a quarter of a percentage point, to 5.1 percent, officials said.
It’s the third rate cut in six months for the economic superpower that was once growing at a breakneck speed but has slowed down sharply in recent months.
The material has been provided by InstaForex Company – www.instaforex.com