Gold gains as October Fed rate hike prospects fade
GLD•Spot gold rose 0.4% to $4,158.17 per ounce as softer U.S. job growth lowered traders’ perceived probability of an October Federal Reserve rate hike to 22%, from 64% a week earlier.
1. Rate hike expectations
Gold prices edged higher after September U.S. job growth undershot expectations and payrolls for the prior two months were revised sharply lower. Tim Waterer of KCM Trade said softer labor data had helped dial back October rate-hike expectations, while the market still treated the Fed’s broader hiking cycle as intact.
2. Metals and market risks
U.S. gold futures for December delivery rose 0.6% to $4,186.40 per ounce. Traders still priced in an 87% chance of a December rate increase. Spot silver gained 1.7% to $61.40 per ounce, while platinum and palladium each rose 0.6%. Waterer said Middle East developments could affect gold through oil prices and the inflation outlook.
