Gold holds ground as investors await US jobs data
Fed Chair Powell to speak on Tuesday
Fed minutes of June policy meeting on Wednesday
Non-farm payrolls data due on Friday
Updates prices as of 1752 GMT
By Brijesh Patel
July 1 (Reuters) -Gold prices edged higher on Monday, buoyed by some short covering from investors with focus turning to U.S. jobs data due later this week that could offer more cues around interest rate cuts by the Federal Reserve.
Spot gold XAU= was up 0.2% at $2,329.79 per ounce as of 1:52 p.m. ET (1752 GMT). Prices registered a more than 4% gain in the second quarter.
U.S. gold futures GCcv1 settled mostly unchanged at $2,338.9.
"We're seeing a little bit of short covering by the shorter term futures traders and bargain hunting by the guys in the cash market. The markets are also being supported by firm crude oil prices and a weaker U.S. dollar," said Jim Wyckoff, senior market analyst at Kitco Metals.
"We are probably going to grind sideways here or maybe sideways to lower here for probably the rest of the summer," Wyckoff added.
U.S. manufacturing contracted for a third straight month in June and a measure of prices paid by factories for inputs dropped to a six-month low amid weak demand for goods, indicating that inflation could continue to subside.
This week, the focus will be on remarks from U.S. Fed Chair Jerome Powell on Tuesday, followed by minutes from the central bank's latest policy meeting on Wednesday and U.S. non-farm payrolls data due on Friday.
Data last week showed U.S. prices were unchanged in May, while consumer spending rose moderately.
"Powell is likely to stick to a data-dependent stance, so should payrolls later this week come in softer, it could again lift gold prices," UBS analyst Giovanni Staunovo said.
The market now sees a 64% chance of the Fed cutting interest rates in September as well as another cut in December. FEDWATCH
Lower interest rates reduce the opportunity cost of holding bullion.
Elsewhere, spot silver XAG= rose 0.6% to $29.29, platinum XPT= slipped 1.6% to $977.70 and palladium XPD= gained 0.1% to $973.61.
Spot gold price in USD per oz https://reut.rs/4eKWfZS
Reporting by Brijesh Patel and Daksh Grover in Bengaluru; Editing by Vijay Kishore, Maju Samuel and Shounak Dasgupta
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