Prices of safe-haven gold were flat on Monday as some profit-taking partially offset support from U.S. recession jitters and rising expectations of a September rate cut from the Federal Reserve.

Spot gold held its ground at $2,443.44 per ounce, as of 0335 GMT, after falling 1% earlier in the session.

U.S. gold futures rose 0.7% to $2,485.80.

“There is some profit-taking happening while traders try and gauge how aggressive the Fed may become in September with regards to the size of the rate cut,” said Tim Waterer, chief market analyst, KCM Trade.

However, “the fundamental picture (for gold) hints at further gains given the expectations for dovish U.S. monetary policy.”

Data on Friday showed that U.S. job growth in July fell short of expectations, with the unemployment rate rising to 4.3%, pointing to possible weakness in the labour market and greater vulnerability to recession. This strengthened the case for a rate cut at the Federal Reserve’s meeting on Sept. 17-18.

Asia gold: India premium drops as buying moderates; China demand lags

Traders are pricing a more than 70% chance of the U.S. central bank lowering rates by 50 basis points in September, compared with an 11.5% chance a week earlier, according to CME FedWatch tool.

Lower interest rates reduce the opportunity cost of holding a non-yielding bullion.

Meanwhile, on Friday, Richmond Federal Reserve President Thomas Barkin maintained a cautious outlook, stating he is not ready to adjust his monetary policy.

Investors will keep a tab on final July S&P Global services and ISM non-manufacturing PMI due later in the day.

Elsewhere, the Pentagon announced on Friday that the U.S. military will deploy additional fighter jets and Navy warships to the Middle East to strengthen defence against threats from Iran and its allies, Hamas and Hezbollah.

Spot silver was flat at $28.52 per ounce, platinum fell 0.5% to $953.25 and palladium was almost unchanged at $889.98.