WASHINGTON (dpa-AFX) - Gold hit a more than four-month high on Monday amid increased bets for a U.S. Federal Reserve interest-rate cut this month.
Investors also looked ahead to key jobs data and monitored Fed Governor Lisa Cook's fight to block her dismissal by President Trump.
Spot gold climbed 0.7 percent to $3,471.51 per ounce in European trade, while U.S. gold futures were up 0.7 percent at $3,541.
The U.S. dollar fell to a five-week low against a basket of currencies after a U.S. federal appeals court has delivered a stunning legal blow to President Donald Trump's trade policy, ruling that the majority of his sweeping tariffs were illegal and that the president overstepped his authority in imposing a series of tariffs -- including duties on China, Mexico, and Canada-under the International Emergency Economic Powers Act.
As Trump runs into legal challenges to his tariff policies, analysts say that the ruling could lead trading partners to drag their feet on negotiations with the White House.
For now, the duties remain in place until October 14, giving the Trump administration a window to appeal to the Supreme Court.
Criticizing the ruling on Truth Social, Trump warned that without the tariffs, the country would be 'completely destroyed' and its military power 'instantly obliterated.'
In economic releases, the closely watched monthly jobs report along with reports on manufacturing and service sector activity will be in the spotlight as the week progresses.
Following July's weak jobs data and recent comments from Fed Chair Jerome Powell at Jackson Hole, U.S. money markets are now pricing an 84 percent chance of a 25 basis-point rate cut at the Federal Reserve meeting on Sept. 17.
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