Gold eases as strong US jobs data boosts Fed rate-hike bets
GLD•Other precious metals
- Among other metals, spot silver XAG= slid 0.8% to $65.64 per ounce, platinum XPT= dipped 0.4% to $1,813.31, and palladium XPD= climbed 0.2% to $1,389.03.
Inflation data and broader market signals in focus
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Data last week showed U.S. job growth accelerated sharply in August, while the unemployment rate held steady at 4.1%.
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Traders see a 60% chance of an interest rate hike at the central bank's policy meeting next week, according to the CME FedWatch Tool, compared with a probability of 50% before the jobs data was released on Friday.
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The U.S. producer price index data is due on Thursday and the consumer price index data is scheduled for the next day.
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Inflation worries remained high as a weekend exchange of strikes on shipping sent oil prices higher, while Iran said it will announce a new restricted zone in the Gulf in the coming days, along with maps of a new shipping corridor through the Strait of Hormuz. O/R
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Although gold is typically seen as an inflation hedge, higher interest rates tend to diminish non-yielding bullion's appeal to investors.
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However, U.S. President Donald Trump on Friday said that unless the Fed cut rates, something that he has demanded previously, he would stop trading with countries with which the United States had a deficit.
