Gold Steadies as Weak NFP and Dollar Softness Support.

Gold holds onto its gains, supported by weaker-than-expected NFP data and ongoing US Dollar softness.

Gold (XAU/USD) begins the week on a cautious footing, trading flat to slightly higher around $3,377 during U.S. hours on Monday. The metal found support after rebounding from an intraday low of $3,345, as markets digested Friday’s weaker-than-expected Nonfarm Payrolls (NFP) report and the resulting pressure on the US Dollar.

The disappointing July jobs data has significantly boosted the odds of a Federal Reserve rate cut in September, marking a shift in sentiment after the Fed held rates steady last week. However, gold’s upside remains capped as US Treasury yields stabilize following Friday’s drop, limiting momentum in the non-yielding asset.

Political uncertainty is also contributing to market caution. President Donald Trump abruptly dismissed Bureau of Labor Statistics (BLS) Commissioner Erika McEntarfer, accusing her—without evidence—of manipulating employment data to damage his political standing. His remarks, which questioned the integrity of official economic figures, have drawn backlash from economists and former officials, raising concerns about the independence of U.S. institutions. This added uncertainty is helping to support gold prices, even as gains remain modest.